Asian market sentiment was mixed on Monday, with Australian shares retreating, and most major markets closed for public holidays.
Investors digested the implications of Prime Minister Anthony Albanese securing a historic second consecutive term—Australia’s first in over two decades—while Indian equities climbed on positive investor sentiment and a strong rally in Adani Group stocks.
Meanwhile, oil prices plunged and Asia-Pacific currencies strengthened against a weaker US dollar.
Australian markets dip despite Albanese’s re-election
Australian equities reversed early gains, with the S&P/ASX 200 falling 0.97% to close at 8,157.80.
This decline follows Friday’s rally, when the index touched its highest level since February 27.
Analysts attributed Monday’s retreat to profit-taking and cautious investor response to Prime Minister Anthony Albanese’s second-term victory, seen as a vote for policy stability amid global economic uncertainty.
While the re-election signals continuity in domestic policy, it also comes at a time when Australia’s exposure to China and shifting trade dynamics is under renewed focus, especially as US-China tensions and global commodity prices remain volatile.
India’s Adani Group surges; investor confidence climbs
Indian stock indices were among the day’s top performers.
The Nifty 50 rose 0.45%, while the BSE Sensex added 0.37%, buoyed by strong gains in Adani Group stocks following news of ongoing discussions with the Trump administration regarding the dismissal of criminal charges in an overseas bribery investigation, as reported by Bloomberg.
- Adani Green jumped 7.71%
- Adani Power soared 7.73%
- Adani Enterprises gained 7.41%
- Adani Ports climbed 7.24%
- Adani Energy advanced 4.88%
The rally came amid optimism around a potential resolution, fueling investor confidence.
Market veteran Mark Mobius further boosted sentiment, noting on CNBC that India is currently receiving the “biggest love” from global investors, citing its demographic dividend and domestic technology adoption.
Mobius also pointed to Vietnam, Brazil, and Taiwan as other promising markets in Asia and Latin America.
Taiwan falls, Indonesia’s growth slows
Taiwan’s Taiex index dropped 1.23% to 20,532.99 in volatile trading, under pressure from profit-booking and geopolitical concerns.
Meanwhile, Indonesia’s Q1 GDP growth slowed to 4.87% year-on-year—its weakest pace since Q3 2021—below economists’ forecast of 4.91%. The moderation was attributed to subdued exports and tightening credit conditions.
Most major Asian bourses closed for holidays
Markets in Japan, South Korea, Hong Kong, and mainland China were closed Monday due to public holidays, keeping regional trading volumes light.
Asia-Pacific currencies strengthen as US dollar weakens
Currencies across the Asia-Pacific region posted gains against the US dollar amid growing expectations of a pause in Fed rate hikes and softer inflation data:
- The offshore Chinese yuan edged up 0.12% to 7.2031
- The Taiwanese dollar surged 2.95% to 29.80, its strongest level in nearly three years
- The Australian dollar rose 0.39% to 0.6467
- The Singapore dollar gained 0.43% to 1.2918
- The Japanese yen appreciated 0.43% to 144.39
- The Indian rupee firmed 0.27% to 84.2720
The rally in regional currencies reflects improved risk appetite and confidence in emerging markets.
Oil prices tumble as OPEC+ ups supply
Crude oil prices fell sharply after OPEC+ agreed to increase production for a second consecutive month:
- Brent crude dropped 2.64% to $59.67 per barrel
- West Texas Intermediate (WTI) fell 3.04% to $56.52 per barrel
The move dampened hopes of tighter supply supporting prices, raising concerns about oversupply in the second half of the year.
Wall Street rally cools in futures trading
US stock futures retreated slightly after a strong performance last week, with all major indices logging robust gains:
- S&P 500 rose 1.47% to 5,686.67, marking its longest winning streak since 2004
- Dow Jones climbed 564.47 points to 41,317.43
- Nasdaq Composite advanced 1.51% to 17,977.73
Futures edged lower Monday, signaling potential consolidation as investors await more clarity on trade tensions and inflation trends.
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