Oct 21, V7N- Asia's stock markets showed mixed performance on Monday, with weakness in Chinese stocks weighing on broader sentiment, despite a brief surge in optimism following Beijing's stimulus measures announced in September. Although China cut its benchmark lending rates, the move was expected, leading to little market reaction. Hong Kong's Hang Seng Index was down 0.6%, and China's blue-chip index swung between losses and gains, closing 0.4% higher. Meanwhile, Japan's Nikkei posted a modest gain of 0.34%.

While stimulus measures from China had initially sparked optimism, investors are now cautious, waiting for more detailed plans from Chinese policymakers, which could be revealed in late October or early November, according to J.P. Morgan strategist Chaoping Zhu.

In the U.S., markets have begun reacting to the upcoming presidential election, with increasing bets on a Donald Trump victory. Trump's policies on tariffs, taxes, and immigration are seen as potentially inflationary, which has bolstered the U.S. dollar, increased bond yields, and boosted equities. Trump's favorable stance on cryptocurrencies has also helped drive bitcoin to a three-month high, with the cryptocurrency reaching $69,487 earlier in the session.

The dollar remained strong, hovering near a two-month high against a basket of currencies. In the bond market, the U.S. 10-year Treasury yield rose slightly to 4.09%.

Meanwhile, gold hit a record high of $2,727.39 an ounce amid the Middle East conflict and uncertainty around the U.S. election. Analysts attribute gold's strength to expectations of continued demand for diversification by emerging central banks, particularly under a potential Trump administration.

Oil prices also recovered slightly on Monday after steep losses the previous week, with Brent crude futures rising 0.4% to $73.36 per barrel and U.S. crude up 0.43% to $69.52 per barrel.

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