Today’s Outlook :
• US MARKET : U.S. stocks closed higher on Monday as the rebound in the technology sector continued following heavy pressure from the AI theme last week. The gains pushed the Dow Jones Industrial Average above the 50,000 level for the first time. The Dow ended relatively flat at 50,135.87, the S&P 500 rose 0.4% to 6,961.23, and the NASDAQ Composite climbed 0.9% to 23,238.67. This extended strength followed a sharp rally on Friday, when the Dow hit a record and the S&P 500 and Nasdaq each jumped around 2%.
Investors are now awaiting the release of key U.S. economic data that had been delayed due to the government shutdown, including the January employment report scheduled for Wednesday and January inflation (CPI) data on Friday. These data will be closely watched to assess whether the labor market is starting to cool and whether inflation pressures have eased enough to open room for Fed rate cuts this year.
• EUROPEAN MARKET : European stocks rose on Monday, kicking off a busy week marked by further quarterly earnings releases and several important economic data points. Germany’s DAX rose 1.2%, France’s CAC 40 gained 0.6%, and the UK’s FTSE 100 increased 0.2%
This week will see the release of growth data from the euro area and the UK. However, market attention remains focused on a series of key U.S. economic data expected to provide clearer signals on the strength of the world’s largest economy, after their release was delayed by a brief government shutdown. The January nonfarm payrolls report and consumer price index (CPI) data are scheduled for release later this week, following the nomination of Kevin Warsh as the next Fed Chair candidate.
• ASIAN MARKET : Most Asian stock markets surged sharply on Monday, tracking the rally in U.S. technology stocks late last week. Japanese stocks hit record highs after the ruling coalition of Prime Minister Sanae Takaichi secured a landslide victory in the lower house vote. Risk appetite improved across the region after U.S. stock indices rebounded strongly on Friday, recovering part of the sharp earlier losses driven by concerns over AI disruption.
Japan’s Nikkei 225 jumped as much as 5.6% to a new record of 57,337.07, supported by political certainty following the Takaichi coalition’s decisive victory in Sunday’s lower house election. The TOPIX index rose 3.4% to a record 3,825.67. Markets expect the Takaichi government to push public spending, tax incentives, and policies to raise wages and corporate investment, while continuing support for strategic sectors such as technology, defense, and energy.
In South Korea, the KOSPI surged nearly 5% after being sharply pressured over the previous two days. Samsung Electronics shares rose more than 5% following reports that the company will begin mass production of next-generation HBM4 memory chips by the end of this month. Shares of SK Hynix also rose more than 5%. Elsewhere, Hong Kong’s Hang Seng gained 1.8% with the Hang Seng TECH sub-index up 1.3%, while mainland China’s Shanghai Composite rose 1.4%
• COMMODITIES –PRECIOUS METALS : Gold prices edged higher on Monday, followed by gains in silver, after high volatility last week driven by weak safehaven demand, profit-taking, and uncertainty over U.S. monetary policy. As of 13:09 ET, spot gold rose 1.9% to USD 5,055.90/oz and April gold futures climbed 2% to USD 5,081.49/oz. Spot silver jumped 5.9% to USD 82.55/oz, moving away from last week’s low around USD 60/oz, while spot platinum rose 0.9% to USD 2,118.15/oz. China’s central bank gold reserves increased to 74.19 million troy ounces at the end of January from 74.15 million the previous month. The PBOC has led global central bank gold purchases over the past year amid rising fiscal uncertainty in advanced economies.
• COMMODITIES –OIL :Oil prices closed more than 1% higher on Monday after the U.S. Department of Transportation urged U.S.-flagged vessels to avoid Iranian waters when transiting the Strait of Hormuz and the Gulf of Oman. Brent rose 99 cents (1.5%) to USD 69.04/barrel, while WTI gained 81 cents (1.3%) to USD 64.36/barrel. U.S. maritime authorities highlighted the risk of vessels being boarded by Iranian forces in the area and advised U.S. ships to stay close to Oman when transiting eastward. This move reignited concerns over supply disruptions, given that around 20% of global oil consumption passes through the Strait of Hormuz.
• INDONESIA : The JCI closed up +1.2% at 8,031.87, with several conglomerate stocks starting to rebound. For today, the market appears likely to lean bearish, as FTSE has postponed inclusion rebalancing in the February 2026 period specifically for Indonesian stocks in line with Indonesia’s capital market reform agenda. Meanwhile, any correction in big-cap stocks could present buying opportunities. Continue to remain cautious with tight stop-loss and trailing stop levels amid the ongoing volatility.
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