Bullish! Overseas Markets Surge Again Today

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On the fifth day of the National Day holiday, overseas markets surged wildly again!

Let's take a look at today's market performance.

On October 5, Asian markets soared. The Nikkei 225 Index closed up 1,637.40 points, or 2.40%, at 69,946.86 points, having briefly broken through the 70,000 mark during intraday trading. Some analysts said that cooling expectations for Federal Reserve rate hikes further strengthened the recent upward momentum of the Nikkei index. The index had previously encountered resistance multiple times near 67,000 points, but now "upward pressure has clearly eased."

Several Asian markets were closed for holidays this week. Eiji Kinouchi, chief technical analyst and head of thematic research at Daiwa Securities, noted in an October 5 report that under such circumstances, trading funds tend to concentrate in the Japanese stock market, so "this week may be a relatively hot period for Japanese stocks."

In Taiwan's stock market, the Taiwan Weighted Index surged more than 1,200 points. On Monday, the MSCI Emerging Markets Stock Index rose as much as 1.1%, the biggest gain in two weeks. The emerging markets currency index rose 0.3%, while the dollar index was roughly flat. Brent crude oil erased early gains and fell below $102 per barrel. The previous week, Brent crude fell 2% cumulatively.

Data released last Friday showed that U.S. nonfarm payrolls increased by only 29,000 in September, below the expectations of all economists, pushing money markets to further reduce bets on a Federal Reserve rate hike in October. An analyst said: "Last week, both U.S. nonfarm payrolls and core PCE inflation data came in below expectations, reinforcing the market's judgment that the magnitude of this U.S. rate hike cycle will be relatively limited, and therefore giving emerging markets some breathing room."

Technology stocks were the biggest driver of the emerging markets stock index's rise, contributing far more than other sectors. Taiwan Semiconductor Manufacturing Company gained more than 3%. The market is optimistic that discussions between this chip giant and Elon Musk's Terafab could lead to a potential collaboration. An analyst said: "From a tactical perspective, we remain bullish on emerging market equities and hard currency bonds. The current global capital expenditure boom is continuing to expand and deepen into more industries and countries, and emerging markets are well positioned to benefit."

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