Asian markets saw mixed movements on Monday as currencies across the region rallied against a weakening U.S. dollar, but stock markets presented a more cautious picture. Australia’s stock market notably declined, even as currencies like the Taiwanese dollar and Australian dollar appreciated against the greenback.
Currencies Surge Across Asia
The standout performer in currency markets was the Taiwanese dollar, which appreciated 5.77% to hit a three-year high of 28.93 against the U.S. dollar. The offshore Chinese yuan also strengthened by 0.21%, reaching its highest level since November 2024, while the onshore yuan remained flat.
Other notable gainers included the Australian dollar, which appreciated by 0.62% to trade at 0.648, and the Singapore dollar, which also gained 0.62% to reach 1.289. The Japanese yen reversed its recent weakness, strengthening 0.69% to 143.93 against the U.S. dollar. Meanwhile, the Indian rupee rose by 0.27% to 84.26.
The rally in currencies comes amid broader dollar weakness, as investors shift their focus to regional markets with stronger growth prospects.
Australia’s Stock Market Declines After Albanese’s Reelection
In contrast to the currency markets, Australia’s equity market faced a significant setback. The S&P/ASX 200 fell by 0.97% to close at 8,157.80, following Prime Minister Anthony Albanese’s reelection. This marked a reversal from the sharp gains seen in the previous session, where the index had reached its highest level since late February.
Albanese’s victory makes him the first Australian prime minister in 21 years to secure a second consecutive term, reflecting the public’s desire for policy continuity amid global economic uncertainty. Despite this political stability, the markets reacted with caution, possibly reflecting concerns about the broader macroeconomic environment.
India and Taiwan Show Diverging Stock Trends
India’s stock markets bucked the regional trend, with both the Nifty 50 and the BSE Sensex posting gains. The Nifty 50 rose 0.47% to close at 24,461.15, while the Sensex climbed 0.37% to 80,796.84. The strong performance was underpinned by gains in Adani Group stocks, which surged amid reports of progress in resolving bribery allegations in the United States. Adani Enterprises jumped 7.03%, while Adani Green and Adani Port rose 6.68% and 6.31%, respectively.
Meanwhile, Taiwan’s Taiex index fell 1.23% in volatile trading to close at 20,532.99. The drop came despite the strong performance of the Taiwanese dollar, as investors remained cautious about global economic uncertainty and its impact on export-heavy markets like Taiwan.
Holidays Limit Activity in Other Major Markets
Several major markets in Asia, including Japan, South Korea, Hong Kong, and mainland China, were closed for public holidays. This limited overall trading activity in the region but also provided breathing room for investors to assess ongoing geopolitical and economic developments.
Global Context: Oil Prices and U.S. Market Trends
Outside of Asia, oil prices took a hit after OPEC+ announced plans to raise production for a second consecutive month. Brent crude was down 1.26% at $60.52 per barrel, while West Texas Intermediate (WTI) crude fell 1.34% to $57.52 per barrel. The drop in oil prices reflects continued concerns about oversupply in the market.
Meanwhile, U.S. futures edged down after a strong rally on Wall Street last week. The S&P 500 had closed Friday’s session 1.47% higher, marking its ninth consecutive day of gains — the longest streak since 2004. Both the Dow Jones Industrial Average and the Nasdaq Composite also posted strong gains, signaling resilience in the U.S. market despite global uncertainties.
Key Takeaways
- Asian currencies, led by the Taiwanese dollar, rallied against the U.S. dollar.
- Australia’s stock market fell 0.97% after Prime Minister Anthony Albanese secured reelection.
- India’s stock markets continued to climb, driven by gains in Adani Group stocks.
- Japan, South Korea, Hong Kong, and China markets were closed for holidays, limiting regional trading activity.
- Global oil prices fell, while U.S. markets showed resilience in recent sessions.
As Asia continues to navigate a volatile global economic environment, the region’s mixed market performance highlights the growing divergence between currency and equity trends. Investors will likely keep a close eye on developments in the U.S. dollar, oil prices, and policy decisions in the coming weeks.
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
→ 
→ 
→ 
→ 
→ 
→ 
→ 
