---
title: "Asian stocks climb on China boost, dollar steady: markets wrap"
description: "Asian stocks advanced following a slew of positive headlines from China that supported sentiment. The dollar was steady as the clock ticked down to a tight US election."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-05-asian-stocks-climb-on-china-boost-dollar-steady-markets-wrap/"
published: "2024-11-05T05:04:26"
updated: "2024-11-05T05:04:27"
lang: "en-ZA"
word_count: 485
---

# Asian stocks climb on China boost, dollar steady: markets wrap

> Asian stocks advanced following a slew of positive headlines from China that supported sentiment. The dollar was steady as the clock ticked down to a tight US election.

By Bloomberg · Published 5 November 2024, 07:04 SAST · Updated 5 November 2024, 07:04 SAST

## Key points
- As Chinese stocks bask in the glow of robust service sector data, the world holds its breath for the US election results, which could either send the dollar soaring or plummeting, depending on whether Trump or Harris takes the prize.
- Chinese equity benchmarks surged over 1% following strong service activity data and supportive government comments, while Japan's Nikkei 225 rebounded after a holiday.
- The upcoming US presidential election is stirring market volatility, with polls indicating a tight race between Trump and Harris, potentially impacting fiscal stimulus decisions in China.
- Anticipation builds for the Federal Reserve's interest rate decision this Thursday, alongside significant US corporate earnings reports.
- In Asia, Australia maintains a 13-year high interest rate amid global economic concerns, while South Korea sees inflation slow to its lowest since early 2021.

## Content

Chinese equity benchmarks rose more than 1%, among the best performers in the region. Japan’s Nikkei 225 jumped following a public holiday, while shares in Australia and South Korea slipped. The Bloomberg Dollar Spot Index was flat and the 10-year Treasury yield advanced one basis point.

After a cautious start to the day, stocks turned higher upon data that showed China’s service activity [expanded](https://www.bloomberg.com/news/articles/2024-11-05/china-services-growth-picks-up-more-than-expected-after-stimulus) at the fastest pace since July, and comments from the premier that the country has ample policy room. Sentiment also got a lift after the nation’s top legislative body [reviewed](https://www.bloomberg.com/news/articles/2024-11-04/china-reviews-plan-to-refinance-local-governments-hidden-debt) a proposal that aims to reduce the financial burden of local officials.

The US presidential vote looms large for financial markets this week, as polls show Americans narrowly split between Donald Trump and Kamala Harris. The likelihood of a disputed result may drag the vote count out for weeks, spurring a potential rise in volatility.

The specific scale of China’s fiscal stimulus may be determined based on the results of the US election, said Shen Meng, a director at Chanson & Co. “If Trump is elected, the negative impact on the Chinese economy will be greater, and central fiscal expenditures may be greater. On the contrary, maybe there’s no need to add too much debt if Harris wins”

There are additional catalysts likely to move the market this week. Election Day will quickly be followed on Thursday by the Federal Reserve’s decision and Jerome Powell’s press conference, where he’ll give details on the central bank’s interest-rate path. A big chunk of US firms are due to report earnings.

“The US dollar is probably the cleanest expression, the most obvious expression for this week,” Chris Weston, Pepperstone Group’s head of research, told Bloomberg TV. A Harris victory coupled with a split Congress warrants selling of the US currency, while “if we get a Trump win you’ll probably see a little bit of a pop in the dollar, 1% or 2% or so over a day or two.”

In Japan, a key potential ally for the weakened government, Yuichiro Tamaki, said the central bank shouldn’t raise interest rates again before March, urging it to closely examine the results of next year’s wage deal results before moving on policy again. Japanese stocks will get an [additional 30 minutes](https://www.bloomberg.com/news/articles/2024-11-04/japan-stocks-may-rise-as-market-gets-extra-30-minutes-of-trading) of trading.

Elsewhere in Asia, Australia’s central bank [is poised](https://www.bloomberg.com/news/articles/2024-11-03/rba-set-to-hold-key-rate-to-counter-sticky-prices-global-risks) to keep interest rates at a 13-year high, marking a year of unchanged policy as it grapples with a slow pace of disinflation and mounting global risks capped by a tight US election.

South Korea’s inflation decelerated to the slowest pace since early 2021, prompting the central bank to welcome the cooling as a sign of firming price stability.

In commodities, gold was little changed as the market braced for a tight US election. Oil [steadied](https://www.bloomberg.com/news/articles/2024-11-04/latest-oil-market-news-and-analysis-for-nov-5) after jumping almost 3% on Monday on heightened tensions in the Middle East and OPEC+’s move to extend supply curbs.