Asian stocks rose on Monday, driven by tech and Chinese shares gains, as the dollar strengthened amid uncertainty over US interest rates, while the euro weakened due to political concerns in France. US President Donald Trump backed the dollar by cautioning BRICS nations against replacing it with another currency, increasing pressure on emerging market currencies. Market volatility this month will be driven by two factors: the impact of Trump on future fiscal settings and potential trade wars, according to Kyle Rodda, senior financial markets analyst at Capital.com. The second key driver will be the US Federal Reserve's policy decisions. A cut and dovish guidance could trigger a 'Santa Rally.' The euro is under pressure due to the risk of a French government collapse, with Prime Minister Michel Barnier facing a Monday deadline for budget concessions or a no-confidence vote. Chinese shares received a boost from a positive private manufacturing survey released on Monday. This data echoed an official survey from Saturday, suggesting China's stimulus measures are starting to take effect. Hong Kong's Hang Seng index edged 0.16 per cent higher, and mainland China's CSI 300 index added 0.6 per cent. The positive momentum from US markets on Friday, where the S&P 500 and Nasdaq closed at all-time highs, spread to Asia. Tech shares led the gains, with Taiwan's stock market rising over two per cent and South Korea's KOSPI gaining 0.38 per cent. Japan's Nikkei index rose 0.8 per cent, but Japanese government bond yields climbed to a 16-year high. The Bank of Japan Governor hinted at a possible rate hike in the future but also expressed concerns about the impact of potential US tariff hikes. The yield on two-year Japanese government bonds jumped 3 basis points to 0.625 per cent, the highest since November 2008. Gold prices fell one per cent to 2,627.71 under pressure from the strong dollar. Oil prices, however, rose on the back of positive Chinese data and renewed tensions in the Middle East. Attribution: Reuters Subediting: M. S. Salama
