Asian stock markets are trading sharply higher on Monday with investors getting back into the buying mode, picking up stocks after Friday's severe setback. Though Wall Street, which was closed last Thursday on Thanksgiving Day holiday, suffered heavily on Friday, most of the markets in the Asia-Pacific region have rebounded strongly on hopes Dubai's financial woes will not significantly halt global economic recovery. Bank stocks are spearheading the rally in most of the markets in the region.
In the Australian market, energy, materials, property trusts, technology and healthcare stocks are the prominent gainers besides key stocks from the banking space.
The benchmark S&P/ASX 200 index, which rose to 4,703.3, is currently up 120.9 points or 2.6% at 4,693. The broader All Ordinaries index is trading at 4,710, up 112.8 points or 2.5% over its previous close.
Commonwealth Bank of Australia Ltd has confirmed it does not expect to incur a material loss from its financial exposure to Dubai World. The other three majors ANZ Bank, National Australia Bank and Westpac Banking Corporation had already confirmed last Friday that their financial exposure to debt-laden Dubai World would not result in material losses.
ANZ Bank, Commonwealth Bank of Australia and Westpac Banking Corporation are trading higher by 3.5%-4%, while National Australia Bank is up over 4.5%. Diversified financials stock Macquarie Group is gaining more than 5%.
Insurance stocks QBE Insurance, Suncorp-Metway and Insurance Australia are also up with strong gains.
Top miners BHP Billiton and Rio Tinto are trading higher by about 2.5% and 3.3% respectively. Orica, Bluescope Steel and Fortescue Metals are also trading firm. However, Newcrest Mining is down in the red with a notable loss.
Shares of IMX Resources are up over 10% on reports Oz Minerals Ltd and IMX Resources Ltd are likely to enter a joint venture to explore and develop copper-gold projects in South Australia. The companies said on Monday that they would jointly explore and develop IMX's Mt Woods tenements in SA, which abut tenements held by Oz Minerals. Shares of Oz Minerals are up nearly 4% up on Friday's closing price.
Among energy stocks, Woodside Petroleum, Oil Search and Origin Energy are up 1.5%-2.3%, while Santos is gaining about 2.5%.
On the economic front, a report from the Reserve Bank of Australia revealed total credit provided to the private sector by financial intermediaries was flat in October, following a 0.1% decline in September. Over the year, total credit rose by 1.1%. Housing credit was up 0.7% in October and increased by 8% over the year, seasonally adjusted.
The TD Securities-Melbourne Institute monthly inflation gauge showed that prices moved up 0.3% in November, matching a 0.3% rise in October. The gauge was flat in September and August. The index also rose 2.1% in the twelve months to November, putting it within the RBA's target band of 2-3% inflation.
In another news, company gross operating profits, in current prices, fell 2.1% in the September quarter, seasonally adjusted, and were down 19.6% over the year, the Australian Bureau of Statistics said on Monday.
In the currency market, the Australian dollar opened higher and was quoting at US$0.9145-US$0.9149 in early trades, up notably from Friday's close of US$0.9015-US$0.9020.
In Tokyo, stocks opened notably higher and are still trading firm amid hopes the government would take steps to rein in the sharply stronger yen. Investors are also seen going in for some hectic bargain hunting following last Friday's severe setback.
The benchmark Nikkei 225 index, which had slid by over 3% on Friday, is currently trading up 246.5 points or 2.71% at 9,328.
Despite reports that Japanese megabanks and a few financial institutions have about 100 billion yen loan exposure to Dubai World, investors are busy picking up bank stocks in morning trades Monday. Mitsubishi UFJ Financial is up over 5% and Mizuho Financial is trading 6% up on Friday's closing price.
Sumitomo Mitsui Financial, Resona Holdings, Chiba Bank, Sumitomo Trust and Banking and Bank of Yokohama are also trading with notable gains.
In the automobile space, Toyota Motor, Suzuki Motor, Honda Motor and Mazda Motor are up sharply. Nissan Motor Co. shares bounced back on reports the carmaker has nearly completed development of a lithium ion battery with twice the capacity of existing ones.
Steel, non-ferrous metals, machinery and electric machinery stocks are mostly trading with notable gains. Food, chemicals and pharmaceuticals stocks are also trading firm.
Shares of insurance companies, real estate and securities firms are trading higher. Retail stocks are trading mixed.
Shares of Takefuji Corp. moved higher on reports the consumer lender is considering selling bad debt at a loss to secure money for a bond redemption slated for June. The stock is currently trading over 4% up on Friday's closing price.
In the currency market, the U.S. dollar traded in the upper 86 yen zone early Monday in Tokyo, up slightly from its levels late Friday in New York. In early trades, the dollar fetched 86.62-86.65 yen against Friday's close of 86.47-86.57 yen in New York and 86.15-86.16 yen in Tokyo. The yen is currently trading at 86.63 to the U.S. dollar.
The South Korean market is trading sharply higher with investors stepping back into the ring after Friday's retreat.
With stocks cutting across various sectors surging higher, the benchmark KOSPI index is trading 40.5 points or 2.67% up at 1,565.
Bank stocks are rallying sharply. Woori Finance is gaining nearly 8%, Korea Exchange Bank is trading higher by 5.2%, Shinhan Financial is up by about 4% and KB Financial is trading with a gain of 3.6%.
Among automobile stocks, Kia Motor is gaining 4.3%, Ssangyong Motor is up 1.5% and Hyundai Motor is trading higher by over 3.5%.
In the technology space, heavyweight Samsung Electronics is trading higher by 2.3%, LG Display LCD is gaining 4.2%, Hynix Semiconductor is up 1.7% and LG Electronics is gaining about 1.5%.
Among shipping stocks, Hyundai Heavy Industries is up 3.7%, Samsung Heavy Industries is trading 3.2% up and Daewoo Shipbuilding is gaining about 3.2%, while STX Pan Ocean is moving up by 2%.
Oil stocks SK Holdings and S-Oil are trading higher by 4% and 2% respectively. KEPCO is gaining a modest 0.8%. Steel stocks Hyundai Steel and POSCO are up 3.4% and 1.3% respectively.
Airliners Korean Air and Asiana Airlines are up 3.2% and 2.3% respectively. Telecom stocks SK Telecom and KT Corp. are trading modestly higher.
Among other markets in the region, Shanghai and Hong Kong are trading sharply higher. New Zealand, Taiwan and Indonesia are also up with notable gains. However, the Singapore market is trading in negative territory with a sharp loss. Markets across the region had ended sharply lower on Friday on concerns about the financial crisis in Dubai.
On Wall Street, stocks tumbled on Friday with traders going on a selling spree amid concerns over the impact of Dubai World's debt worries on global economy. The major averages all ended the day firmly in negative territory, although well off their worst levels of the day.
The Dow closed down 154.5 points or 1.5% at 10,309.9, the Nasdaq fell 37.6 points or 1.7% to 2,138.4 and the S&P 500 closed down 19.1 points or 1.7% at 1,091.5.
Major European markets showed a substantial turnaround on Friday after moving sharply lower at the open. The U.K.'s FTSE 100 Index rose 1%, while the French CAC 40 index and the German DAX index closed up 1.2% and 1.3% respectively.
Crude oil prices drifted lower on Friday on concerns that Dubai's call for a freeze on debt payment by Dubai World could derail the global recovery from recession. Light sweet crude for January delivery ended at US$76.05 a barrel, lower by US$1.91 from Wednesday's close.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.