Hong Kong, Shanghai, Seoul, Taipei and Jakarta declined, while Sydney, Singapore, Manila and Wellington gained
Asian markets were mixed Monday as investors weigh the impact of the attack on Donald Trump with data indicating it has boosted his chances of being re-elected president.
Eyes are also on a key meeting of China’s top leadership in Beijing, with hopes for measures to boost the world’s number two economy, which grew less than anticipated in the second quarter.
Investors struggled to extend the rally enjoyed on Wall Street, where all three main indexes closed on a positive note despite a forecast-topping read on US wholesale prices.
The figures were not enough to overshadow Thursday’s news that the CPI had slowed more than expected in June, which ramped up bets on a Fed interest rate cut in September.
That came after central bank chief Jerome Powell told lawmakers that inflation did not need to come in at decision-makers’ 2% target for them to begin lowering borrowing costs.
However, investors are keeping a close eye on developments in the US after Trump was shot at on Saturday at a rally ahead of the Republican convention this week.
While the odds of him beating President Joe Biden had been increasing in recent weeks, they got an extra lift from the shooting.
Observers said a Trump victory could see lower corporate taxes – a boost for companies’ bottom lines – but also an increase in tensions with China with new tariffs possible.
Still, Katrina Ell at Moody’s Analytics said: The assassination attempt might lead to a temporary boost in the polls for Trump, but a lot can change before November.
Financial markets are expected to soon refocus on the Fed and the growing possibility of a rate cut in September, she added.
The dollar gained Monday, having weakened last week owing to the prospect of lower rates, while equity markets were mixed.
Hong Kong, Shanghai, Seoul, Taipei and Jakarta declined, while Sydney, Singapore, Manila and Wellington gained.
Official data showed the Chinese economy expanded just 4.7% in the second quarter.
Separate data showed retail sales slowed sharply in June as the country’s consumers remain cautious.
