Bitcoin and US stock futures climbed on Monday after China’s economy expanded faster than expected in the third quarter, while falling oil prices helped improve investor sentiment across global financial markets.
China’s gross domestic product grew 4.5% year on year during July to September, exceeding economists’ forecast of 4.4% and accelerating from 4.3% in the preceding quarter, according to the National Bureau of Statistics.
Bitcoin briefly climbed towards $82,500 as cryptocurrency traders responded to the stronger economic figures and improving conditions in traditional financial markets. Nasdaq futures also advanced, reflecting renewed demand for technology shares following a difficult period for companies associated with artificial intelligence.
The market recovery was uneven, however. South Korea’s Kospi faced selling pressure after an initial improvement, highlighting continuing concerns about technology valuations and the substantial financing requirements of artificial intelligence development.
US Nasdaq futures gained approximately 1% during Asian trading, while contracts tracking the broader S&P 500 advanced around 0.7%. Lower energy prices provided additional support as investors assessed their implications for inflation, corporate earnings and borrowing costs.
China’s economic figures offered a measure of reassurance about activity in the world’s second-largest economy. Quarterly output increased 1.2% from the preceding three months, exceeding expectations for a 1.1% expansion and improving from 0.9% growth during April to June.
The stronger performance was supported by exports and industrial production, although weaknesses in household consumption and property investment continued to complicate the economic outlook.
Official figures showed industrial production increasing 5.5% year on year in September, compared with 5.2% in August. Retail sales grew 1.1%, indicating modest improvement in consumer spending despite persistent pressure on household confidence.
China’s government has established an annual economic growth target of approximately 4.5% to 5%, making the third-quarter performance significant for policymakers considering whether further stimulus measures are necessary.
Growth during the first nine months reached 4.6%, according to official estimates, keeping the economy within reach of the government’s full-year objective.
Financial markets nevertheless remained sensitive to concerns that China’s expansion depends heavily on exports and industrial investment rather than sustained improvements in domestic demand.
The property sector remained a particular concern, with investment continuing to contract despite measures intended to support homebuyers and stabilise developers.
Oil markets supplied another important influence on trading. Brent crude futures declined approximately 1.7% to $107.95 a barrel, while US crude futures slipped 0.8% to $100.62.
The decline followed developments surrounding Washington’s sanctions policy towards Russia. President Donald Trump indicated that restrictions could be eased, potentially allowing additional Russian energy supplies into international markets, although the administration had not finalised its position.
US Secretary of State Marco Rubio indicated that the administration could take up to 60 days to assess the economic consequences of changing sanctions arrangements.
Lower crude prices helped ease immediate concerns about inflation, particularly because energy costs influence transport, manufacturing and household expenditure across major economies.
US government bonds strengthened as yields declined. The benchmark 10-year Treasury yield fell approximately four basis points to 5.0525%, providing some relief to financial markets concerned about elevated borrowing costs.
Expectations surrounding Federal Reserve policy remained important for cryptocurrency investors. Lower inflation could eventually create additional room for monetary easing, although policymakers face competing pressures from energy markets and economic activity.
The Federal Reserve’s benchmark interest rate currently stands between 4.75% and 5%, with financial markets expecting policymakers to leave borrowing costs unchanged at their next meeting.
Across Asian equities, the initial advance reflected bargain hunting following substantial losses in technology stocks. Japan’s Nikkei and South Korea’s Kospi both experienced volatile trading as investors reassessed exposure to semiconductor manufacturers.
Concerns about artificial intelligence spending remained prominent. Goldman Sachs estimates that five major technology companies could increase their combined capital expenditure to approximately $1.2 trillion next year, raising questions about investment returns.
China’s currency strengthened against the dollar, with the yuan reaching approximately 6.6828, its strongest level since July 2022.
Gold traded around $4,181 an ounce, supported by declining bond yields, while the dollar remained under pressure against several currencies.
Elsewhere, European equity futures weakened amid political uncertainty in France, demonstrating the differing regional influences on international investment flows.
Chinese blue-chip shares edged lower after initially benefiting from the economic figures, with investors continuing to assess whether stronger industrial activity would translate into a sustained improvement in domestic consumption.
