Simultaneous Rise in Asian Stock Markets Amid Eased US Default Concerns and Falling Oil Prices

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] On the 7th, major Asian stock markets rose together as concerns over various factors, including the sharp rise in international oil prices, eased.

The KOSPI index of the Korean stock market, which had continued a sharp decline for three consecutive trading days, closed at 2,959.46, up 51.15 points (1.76%). The KOSDAQ index also jumped 3.37%.

Japan's Nikkei index (+0.54%) and Taiwan's TAIEX index (+1.96%) also rose. Hong Kong's Hang Seng index showed an increase of about 2.8%. The Shanghai Stock Exchange in China was closed this week due to the National Day holiday.

Morgan Stanley Capital International (MSCI) Asia Pacific (excluding Japan) stock index reportedly rebounded from recent weakness and showed an intraday rise of 1.25% on the day.

The Asian stock markets appeared to revive as the New York stock market closed higher, supported by news that the U.S. Republicans proposed postponing the debt ceiling until December.

With the U.S. Treasury's emergency measures deadline approaching on the 18th, if the federal government's debt ceiling is postponed until December, it could buy time for negotiations and somewhat reduce concerns about default.

The easing of international oil price strength, which had weighed down major stock markets including the U.S., due to increased U.S. oil inventories, is also cited as a major factor improving investor sentiment.

Recent sharp rises in oil prices had amplified inflation concerns, but the situation changed rapidly. Natural gas prices also surged recently, while Russian President Vladimir Putin's statement about maintaining gas supply to Europe and the news that the U.S. and China agreed to hold a virtual summit between President Joe Biden and President Xi Jinping within the year were also analyzed by foreign media as factors improving investor sentiment.

This content was produced with the assistance of AI translation services.