Asian markets opened with varied performances on Monday, reflecting investor reactions to recent economic data and weather-related disruptions.
Hong Kong’s Hang Seng Index fell by 0.76% as investors digested weak economic indicators from China. Meanwhile, Australia’s S&P/ASX 200 and Taiwan’s Weighted Index posted modest gains.
Hong Kong’s Hang Seng index drops
The decline in Hong Kong’s Hang Seng Index was driven by disappointing economic figures from China released over the weekend.
August data revealed that factory output, retail sales, and investment numbers all fell short of expectations. Additionally, the urban jobless rate reached a six-month high, and year-on-year home prices dropped at their fastest pace in nine years.
These figures raised concerns about the health of China’s economy and contributed to the negative sentiment in Hong Kong’s stock market.
Australia’s S&P/ASX 200 rises 0.44%
In contrast to Hong Kong, Australia’s S&P/ASX 200 opened up 0.44%, signaling some positive momentum. The index’s increase may reflect a degree of investor optimism despite regional uncertainties.
Additionally, the Taiwan Weighted Index showed a slight uptick, suggesting cautious optimism among investors in the region.
Japanese yen strengthens
Japan’s markets remained closed for Respect for the Aged Day, but the Japanese yen strengthened to 140.49 against the US dollar.
This represents the yen’s strongest level in over a year. Expectations for Japan’s inflation data, set to be released soon, are that it will show a slight increase in August.
This may influence the Bank of Japan’s upcoming policy decisions. The central bank is anticipated to keep interest rates unchanged while signaling potential future rate hikes.
Typhoon Bebinca causes flight cancellations in China
Typhoon Bebinca has disrupted travel in China, leading to the cancellation of hundreds of flights. Shanghai, in particular, is expected to experience the strongest storm since 1949.
The typhoon’s impact on economic activities and investor sentiment is an additional factor influencing market conditions across the region.
Read More: China’s housing market: Is the bottom in sight?
Market closures and upcoming central bank decisions
Markets in mainland China and South Korea were closed for the Mid-Autumn Festival, while Japan’s Respect for the Aged Day holiday also contributed to reduced trading activity.
Investors are awaiting key central bank decisions from the region, including China’s setting of its one- and five-year loan prime rates on Friday.
The current one-year loan prime rate stands at 3.35%, and the five-year rate at 3.85%. These rates are crucial as they impact loan and mortgage pricing.
US indexes end the week on a high note
In the US, after a challenging start to September, major indexes ended the previous week on a positive note. The S&P 500 gained 0.54%, closing at 5,626.02, while the Nasdaq Composite rose 0.65% to 17,683.98.
The Dow Jones Industrial Average increased by 0.72%, ending the week at 41,393.78. This marked the best week of 2024 for the S&P 500 and Nasdaq Composite, signaling a rebound amid broader market volatility.
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