Asian stocks rise with US curbs on China in focus

China will likely remain the focus in the Asian trading day, after the US unveiled fresh curbs on Beijing’s access to vital components for chips and AI

Asian shares rose to follow the upbeat tone on Wall Street where a rally in the world’s largest technology companies drove stocks to fresh all-time highs.

Equity benchmarks gained in Japan, South Korea and Australia. Hong Kong and US futures were steady. The moves came after the S&P 500 notched its 54th closing record this year on Monday, and the tech-heavy Nasdaq 100 rose more than 1%.

The dollar was steady in early Asian trade. It snapped a three-day losing streak Monday after President-elect Donald Trump’s warning to BRICS nations. The euro was little changed after falling as much as 1.1% in the previous session amid the political turmoil in France, where bonds and stocks came under renewed pressure.

China will likely remain the focus in the Asian trading day, after the US unveiled fresh curbs on Beijing’s access to vital components for chips and AI in a move that stopped short of earlier proposals that would have sanctioned more key Chinese firms. A decision by Chinese leaders to skip releasing a readout for a key policy meeting also left investors hungry for signs of stimulus on the edge.

More broadly, traders are bracing for a barrage of economic data and remarks from Federal Reserve speakers that will help shape the outlook for interest rates. The highlights this week include Friday’s payrolls report, which is expected to show US hiring jumped in November, as well as Federal Reserve Chair Jerome Powell’s scheduled participation in a moderated discussion on Wednesday.

“This week is the last truly important economic data week of 2024,” said Tom Essaye at The Sevens Report. “If results are ‘Goldilocks,’ then investors will expect a soft landing and a December rate cut.”

Treasuries were steady in Asia, after paring losses Monday following Fed Governor Christopher Waller’s assessment that he’s inclined to vote for a rate cut in December, though data due before then could make the case for holding them steady. The swaps market is predicting more than 70% of a quarter-point interest rate cut this month.

Back on Wall Street, the S&P 500 added 0.2%. The Nasdaq 100 rose 1.1%, while Tesla Inc. dropped in after-hours trading after a Delaware judge again rejected a supersized compensation package for CEO Elon Musk. The Dow Jones Industrial Average fell 0.3%.

In Europe, Marine Le Pen pledged to topple Prime Minister Michel Barnier’s government after he failed to meet her demands on a new budget, threatening financial and political disruption for France.

Oil edged higher as traders watched for clues on OPEC+’s supply plans ahead of a key meeting this Thursday. Gold was steady, staying within a narrow trading range where it’s been for the past week.