WORLD oil prices jumped Monday on fresh moves by China to boost its economy and as traders tracked an uncertain future for Syria and the wider crude-rich Middle East.
Major stock markets diverged as investors reacted to political crises in South Korea and France, and tracked the perspectives for interest rate cuts.
Gold, seen as a haven investment, gained around one percent.
“The week has kicked off on a largely upbeat tone following the welcome announcement that Chinese authorities plan to enact further stimulus over the year ahead,” noted Joshua Mahony, analyst at traders Scope Markets.
“This shift has already fuelled sharp gains in key assets, with the Hang Seng surging 2.8 percent and commodities like copper, zinc, iron ore, and palladium rallying on expectations of increased demand.”
Oil prices rose around two percent as traders tracked developments in Syria after president Bashar al-Assad fled the country over the weekend as Islamist-led rebels swept into Damascus.
Investors also reacted to developments in China where President Xi Jinping and other top leaders said Monday they would adopt a more “relaxed” approach to monetary policy as they hashed out plans to boost the economy next year.
The world’s second-largest economy is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt — all of which threaten Beijing’s official growth target for this year.
Leaders are also eyeing the second term of Donald Trump in the White House, with the president-elect indicating he will reignite his hardball trade policies, fuelling fears of another standoff between the superpowers.
Elsewhere in Asia, South Korean stocks tumbled as the country was racked with political uncertainty after President Yoon Suk Yeol escaped impeachment following his brief imposition of martial law last week.
The won was trading at around 1,432 per dollar Monday, compared with 1,413 on Friday.
The euro rose against the dollar, having taken a hit last week when France’s new government fell after a no-confidence vote.
The Paris stock market rose on Monday, with President Emmanuel Macron apparently eyeing a broad alliance to form a new French government, after Michel Barnier was ousted last week over his 2025 budget plan.