Investors’ reactions to economic data, weather disruptions and recent market movements were reflected in the opening of Asian markets on Monday.
Hong Kong’s Hang Seng Index dropped by 0.76%, as investors digested the weak Chinese economic indicators. S&P/ASX 200 in Australia and Taiwan’s Weighted Index both posted modest gains.
Hong Kong Hang Seng Index drops
China’s disappointing economic data released at the weekend has contributed to Hong Kong’s Hang Seng Index decline.
Data from August revealed that retail sales and factory production numbers were all below expectations. The urban unemployment rate also reached its highest level in six months, while home prices fell at the fastest rate they have seen for nine years.
The figures raised concern about China’s economic health and contributed to a negative mood in Hong Kong’s stock exchange.
Australia’s S&P/ASX 200 increases by 0.44%
S&P/ASX 200 in Australia opened up by 0.44% in contrast with Hong Kong. This indicates a positive trend. This index increase could be a reflection of investor confidence despite the regional uncertainty.
The Taiwan Weighted Index also showed an uptick. This suggests cautious optimism from investors.
The Japanese yen is strengthening
Japan’s market remained closed for Respect for the Aged Day but the Japanese currency strengthened to 140.49 per US dollar.
The yen is at its highest level since over a month. The data on Japan’s August inflation is expected to show an increase.
The Bank of Japan may be influenced by this in its upcoming decisions. It is expected that the central bank will keep rates at current levels while signaling future interest rate increases.
Flight cancellations due to Typhoon Bebinca in China
Bebinca, a typhoon that has caused travel disruption in China and the cancellation of many flights. Shanghai is likely to be hit by the worst storm since 1949.
Market conditions in the entire region are also affected by the typhoon’s effect on investor sentiment and economic activity.
Read more: China’s Housing Market: Are we nearing the bottom?
Closed markets and central bank announcements
The Mid-Autumn Festival in China, South Korea and Japan was a major reason for reduced trading.
Investors await key decisions by central banks in the region. China will set its prime rate for loans of one and five years on Friday.
The one-year prime rate is currently 3.35% and the five year rate 3.85%. They are important because they affect the pricing of loans and mortgages.
US Indexes End the Week on a High
After a difficult start to the month of September in the US, the major indexes closed the week before on a high note. S&P 500 closed at 5,626.02 with a gain of 0.54%. Nasdaq Composite was up 0.65%, to 17,683.98.
The Dow Jones Industrial Average grew by 0.72% and ended the week at 41.393.78. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average had their best week in 2024. This was a sign of a recovery amid broader volatility.
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