Asian equities kicked off the week on a positive note Monday, extending Wall Street’s recent winning streak as strong U.S. corporate earnings, led by Amazon’s blockbuster results, boosted investor sentiment across global markets. Gains in technology-heavy indexes, particularly in South Korea and Taiwan, helped offset caution in China, where new manufacturing data pointed to a cooling economy.

Trading volume was light with Japan’s markets closed for a public holiday, but optimism carried through regional exchanges as U.S. futures and crude oil prices climbed.

Tech Rally Propels Asia Higher

South Korea’s Kospi index jumped 2.6% to 4,212.20, led by a 3.4% rise in Samsung Electronics, the country’s largest listed company and a bellwether for regional tech demand. The strong performance followed Amazon’s better-than-expected quarterly earnings, which reignited optimism over global technology spending despite lingering macroeconomic uncertainties.

“The Amazon results injected new life into risk appetite,” said Tommy Woo, chief strategist at Seoul-based Mirae Asset Securities. “Investors are shifting back into technology after weeks of defensive positioning, especially with AI-driven revenue growth anchoring expectations for 2026.”

The Nasdaq composite closed 0.6% higher on Friday, powered by Amazon’s 9.6% surge, while the S&P 500 gained 0.3% to 6,840.20, its third straight weekly advance and sixth consecutive monthly gain — the longest since 2021. The Dow Jones Industrial Average edged up 0.1% to 47,562.87.

Amazon’s $2.4 trillion valuation means its performance now exerts as much influence on the S&P 500 as entire sectors, analysts noted. Without Amazon’s rally, the index would have posted a modest decline Friday.

China’s Growth Signals Mixed Momentum

Chinese equities were more muted as economic data signaled that the country’s manufacturing recovery is losing steam. The private-sector RatingDog China General Manufacturing PMI slipped to 50.6 in October from 51.2 in September, while the official PMI dropped below the 50-point threshold, to 49, indicating contraction.

The Shanghai Composite Index edged 0.1% higher to 3,958.21, and Hong Kong’s Hang Seng added 0.4% to 26,017.76, reflecting cautious sentiment as traders weighed the implications of slowing factory output against policy easing prospects.

“The data reinforce the view that China’s rebound remains uneven,” said Clara Liu, an economist at Nomura Hong Kong. “While export orders have stabilized, domestic demand is still lagging, which may keep pressure on Beijing to provide targeted fiscal and monetary support in the coming months.”

Still, markets showed little reaction to U.S. President Donald Trump’s remarks on Sunday that Chinese leader Xi Jinping had pledged not to take military action against Taiwan during Trump’s presidency. The long-sensitive issue was notably absent from the leaders’ recent talks in South Korea, which instead focused on trade and supply chain stability.

Wall Street’s Tailwinds and Market Risks

On Wall Street, attention remains fixed on the tech sector’s earnings momentum and whether companies can justify their lofty valuations. While Apple posted solid quarterly results, its shares slipped 0.4%, suggesting investors remain wary about slowing global demand and margin pressures.

“After such a strong six-month rally, markets need consistent earnings surprises to sustain these levels,” said Michael Farr, chief investment officer at Farr Miller & Washington. “The next phase of this cycle will depend less on rate cuts and more on revenue growth — especially from tech and consumer giants.”

The S&P 500 has now risen for six consecutive months — a streak not seen since 2021 — driven largely by the AI investment boom and resilient U.S. consumer spending. Yet analysts caution that valuations across megacap stocks leave little room for disappointment.

Commodities and Currencies Steady

In commodities trading, U.S. crude oil gained $0.23 to $61.21 per barrel, while Brent crude — the global benchmark — added $0.26 to $65.03, extending modest gains from last week’s OPEC+ decision to pause first-quarter 2026 production hikes.

In currency markets, the U.S. dollar strengthened to ¥154.06 from ¥153.48, reflecting expectations that the Federal Reserve will maintain a cautious stance after its recent rate cut. The euro slipped slightly to $1.1532.

Outlook: AI Optimism Meets Economic Caution

With global equities entering November on firm footing, investors are watching for fresh macro signals amid an otherwise data-light week. The ADP private payrolls report and ISM manufacturing survey in the U.S. will offer clues on labor and industrial trends, while Asia’s focus remains on whether China can sustain even modest economic expansion.

“The story is still one of resilience — but selective resilience,” said Woo. “Tech is carrying the market, while manufacturing and trade remain fragile. That divergence will define how long this rally can last.”