Asian markets faced a downturn following unexpectedly weak loan demand in China for October.
Japan’s Nikkei 225 initially rose by 0.6% in morning trading, reaching 39,774.43, but later fell back by 0.4% to settle at 39,394.62.
South Korea’s Kospi index dropped 1.9% to 2,483.66, while Australia’s S&P/ASX 200 dipped slightly by 0.1% to 8,255.60.
Hong Kong’s Hang Seng Index declined sharply by 3.1% to 19,795.60, and the Shanghai Composite fell by 2% to 3,402.56.
Data released after market hours on Monday showed that Chinese banks issued only 500 billion yuan (£53.9bn) in new loans last month, a significant decrease from September and below analysts’ forecasts.
“Sluggish loan growth for both households and businesses highlights weak domestic demand,” analysts at Bank of America noted.
In the U.S., stock markets hit record highs driven by interest in so-called “Trump trades.”
The Dow Jones Industrial Average increased by 0.7% to 44,293, the S&P 500 edged up 0.1% to 6,001, while the Nasdaq Composite remained mostly flat at 19,298.
In the bond market, the yield on 10-year U.S. Treasury notes stood at 4.310% on Monday night, down from 4.333% late on Friday.
