Market Overview
Asian equity markets were mixed on Monday, 02-NOV-26. Australia’s S&P/ASX 200 closed lower ahead of an anticipated Reserve Bank of Australia (RBA) rate hike, while Chinese and South Korean equities gained in ongoing trading. Reports of potential stock-market support in China and gains in Korean technology shares helped sentiment, alongside easing oil prices.
The week ahead for global investors is packed, with Apple’s earnings, Tuesday’s US midterm elections and Friday’s US jobs report expected to shape market sentiment following recent disappointments from major US tech firms regarding AI-related spending.
Markets
Australia’s S&P/ASX 200 (^AXJO) finished the session lower, shedding 0.58% to 8,856.50 on Monday.
In actively trading Asian markets, South Korea’s KOSPI (^KS11) surged, gaining 2.56% to 5,877.48 as of approximately 2:20 pm Seoul time. China’s Shanghai Composite (000001.SS) advanced 0.71% to 3,624.42, and the Hang Seng Index (^HSI) in Hong Kong added 0.55% to 23,423.70, both as of approximately 1:25 pm local time. In contrast, Japan’s Nikkei 225 (^N225) declined 0.10% to 63,225.60 as of approximately 2:25 pm Tokyo time, while Singapore’s Straits Times Index (^STI) fell 1.32% to 5,305.67 as of approximately 1:25 pm Singapore time.
In commodity markets, Brent Crude (BZ=F) fell 6.73% to $109.72 a barrel, and WTI Crude (CL=F) declined 3.52% to $100.45 a barrel. Gold (GC=F) advanced 0.43% to $3,915.70 per ounce. The AUD/USD (AUDUSD=X) currency pair traded down 0.05% to 0.7023.
US Treasury yields from the previous session (30-Oct-26) saw the US 10-Year Treasury yield (^TNX) stand at 4.929%, down 6.00 basis points, and the US 30-Year Treasury yield (^TYX) at 5.309%, down 2.00 basis points.
European markets in London (LSE) and Frankfurt (Xetra) were in pre-market status at the time of the report.
What Drove Markets
Australian equities were primarily influenced by the looming RBA policy decision. Investors are anticipating a rate hike amid persistent domestic inflation, which accelerated to 4.3% in September from 4.0% in August. RBA Deputy Governor Andrew Hauser previously warned that the inflation outlook looked materially worse than previously projected, while Governor Michele Bullock noted that some upside risks had materialised. Major Australian banks reacted to the outlook, with Commonwealth Bank of Australia (CBA.AX) dropping 1.00% and National Australia Bank (NAB.AX) falling 1.45%.
In China and Hong Kong, market resilience was attributed to reports that Chinese financial regulators would meet with banks and securities firms to discuss measures aimed at bolstering the country’s stock market. This provided a significant boost, particularly to consumer cyclicals and technology sectors. Mainland China’s CSI 300 also added 0.21% in earlier trading, according to CNBC.
South Korean markets saw strong gains, with the KOSPI index jumping, led by technology shares. SK Hynix climbed 4%, and Samsung Electronics rose 1.5%, according to Investing.com.
The broader tech sector, however, remains under scrutiny following recent disappointing forecasts from major US firms. Intel (INTC) plunged 28.58% in the previous session (30-Oct-26) after a disappointing profit outlook, raising concerns about semiconductor and other AI-related companies. Alphabet (GOOG, GOOGL) and Microsoft (MSFT) also posted lower-than-expected capital expenditure forecasts, contributing to cautious sentiment regarding AI infrastructure investment. While Amazon (AMZN) left its full-year capital expenditure guidance unchanged, 3Fourteen Research’s Warren Pies commented on Anthropic’s public IPO filing, saying there was much to like about the filing and that he saw no fundamental break in the AI trade, while distinguishing that view from its technical performance. Horizon’s Mike Dickson noted a rotation into defensive areas like healthcare as investors see return potential beyond AI.
Easing oil prices, with Brent Crude down 6.73% and WTI Crude falling 3.52%, supported risk appetite in equity markets. This easing was attributed to continuing diplomatic efforts to address geopolitical tensions.
Stocks to Watch
- Australian Banks (CBA.AX, NAB.AX, WBC.AX): With the RBA expected to raise rates, these institutions remain in focus. Commonwealth Bank of Australia (CBA.AX) fell 1.00% to 165.05 and National Australia Bank (NAB.AX) declined 1.45% to 40.91, as both banks cut their economic growth forecasts. Westpac (WBC.AX), which gained 1.00% to 37.19, had Morningstar retain its fair value estimate following its recent results.
- US Technology Giants (AAPL, INTC, GOOG, MSFT, AMZN): The tech sector’s outlook, particularly concerning AI spending, remains a key theme. Apple (AAPL) closed down 1.23% to 344.63 (30-Oct-26) as investors await its quarterly earnings report. Intel (INTC) plummeted 28.58% to 65.76 (30-Oct-26) due to a disappointing profit outlook, impacting the semiconductor space. Alphabet’s Class C shares (GOOG) fell 1.45%, its Class A shares (GOOGL) declined 1.40%, and Microsoft (MSFT) lost 1.55% on 30-Oct-26. Lower-than-expected capital expenditure forecasts from Alphabet and Microsoft had weighed on sentiment during the week. Amazon (AMZN) dipped 1.41% to 240.35 (30-Oct-26) but maintained its full-year capex guidance.