Australia’s ASX 200 added 0.2 per cent and South Korea’s KOSPI gained 0.1 per cent
Most Asian stocks gained on Monday, albeit slightly, as investors prepared before a series of key central bank meetings this week, while Chinese shares slumped on continued signs of disinflation in the country.
Regional markets took positive signals from Wall Street, after U.S. stock indexes gained on Friday after stronger-than-expected labour market data. The reading pointed to some resilience in the world’s biggest economy, although it also saw traders pricing fewer chances of early interest rate cuts by the Fed.
U.S. stock futures were flat on Monday.
Japan’s Nikkei 225 was the best performer among its peers, up 1.6 per cent as it recovered from sharp losses seen last week. Hawkish signals from the BoJ had battered local stocks, although the prospect of comparatively loose monetary conditions in Japan still kept investors bullish on local stocks.
Wider Asian markets were a touch higher, although concerns over China and caution before a Fed meeting this week kept gains limited. While the central bank is broadly expected to keep rates on hold, its outlook for 2024, especially on when it plans to begin cutting rates, will be closely watched.
Australia’s ASX 200 added 0.2 per cent, while South Korea’s KOSPI gained 0.1 per cent.
China’s blue chip Shanghai Shenzhen CSI 300 index dipped 1.3 per cent to its lowest level since early-2019, while the Shanghai Composite and Hong Kong’s Hang Seng also logged similar declines.
Data released over the weekend showed that Chinese consumer inflation dropped at its fastest pace in three years in November, while producer inflation dipped for a fourteenth successive month.
The figures showed that Chinese spending was not picking up in spite of continued liquidity measures from Beijing- a trend that bodes poorly for Asia’s largest economy. China was now in disinflation for two successive months, heralding little increase in economic activity in the coming months.
The inflation data also came on the heels of several mixed economic data for November, and drew increasing calls from investors for more stimulus measures from Beijing.
