Asian markets opened Monday morning with a broad-based rally in risk assets, reversing Friday's pessimistic sentiment as investors flocked back to stocks, oil, and cryptocurrencies, while gold continued its upward momentum.
Following the Asian market opening on Monday, US stock index futures responded with gains, with S&P 500 futures climbing nearly 1%. Asia-Pacific equity markets showed mixed performance, with Australia's S&P/ASX 200 index declining 0.3% and Hong Kong Hang Seng index futures falling 0.5%. Japanese markets remained closed due to a holiday.
Oil prices rebounded more than 1%, while spot gold advanced 0.7% to $4,045 per ounce. Cryptocurrencies staged a comeback, with Bitcoin reclaiming the $115,000 level.
A Commerce Ministry spokesperson addressed recent trade policy measures on the 12th in response to questions. Regarding US threats to impose 100% tariffs on China citing "export controls on rare earth and related materials," the spokesperson stated that threatening with high tariffs is not the right way to engage with China.
The Commerce Ministry expressed that China's position on trade wars remains consistent - China does not want to fight but is not afraid to do so. China urges the US to promptly correct its erroneous practices, guided by the important consensus reached during the leaders' phone call, to maintain hard-won consultation results and continue leveraging the China-US economic and trade consultation mechanism. Through dialogue based on mutual respect and equal consultation, both sides should address respective concerns, properly manage differences, and maintain stable, healthy, and sustainable development of China-US economic and trade relations. If the US persists in its unilateral actions, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.
Analysts believe that combined with the restraint shown in weekend interviews and China's rational response, the fundamental tone between both sides remains unchanged and will not become a pivotal market event.
**Risk Assets Rebound, Gold Extends Gains**
At the start of Asian trading hours, asset prices broadly recovered. As of publication, S&P 500 futures had risen over 1%.
In commodities, WTI crude oil gained 0.9% to $59 per barrel.
Gold, as a safe-haven asset, continued its upward trajectory, with spot gold rising 0.19% to $4,026.17 per ounce as of publication.
Foreign exchange markets remained relatively stable, with the Bloomberg Dollar Spot Index showing little change and the yen weakening 0.5% against the dollar to 151.93. Offshore yuan exchange rates remained essentially flat.
However, Asia-Pacific equity markets showed divergent performance. Australia's S&P/ASX 200 index fell 0.3%, while Hong Kong Hang Seng index futures declined 0.5%. Japanese markets remained closed for a holiday.
Following historic large-scale liquidations, cryptocurrency markets saw a strong rebound over the weekend. According to CoinGecko data, as of October 12th, Bitcoin gained 4.2% in 24 hours, trading near $115,180, while Ethereum surged 10.8% in 24 hours to $4,143.
Other major tokens also posted widespread gains, with Solana rising 6.3% and Dogecoin surging 7.6%. Total cryptocurrency market capitalization recovered to $3.85 trillion, up nearly 10% from the low point two days prior.
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