Asian stocks were mixed as investors grappled with weak economic data from China and awaited the outcome of a key Communist Party policy meeting in Beijing.
Japan’s benchmark Nikkei 225 rose by 0.6% to 41,399.72 after reopening from a holiday. In contrast, Hong Kong’s Hang Seng index declined by 1.5% to 17,747.65, and the Shanghai Composite index fell by 0.4% to 2,963.25.
Markets were still digesting weaker economic data from China released on Monday, which showed that annual economic growth had fallen from 5.3% in the first quarter to 4.7% in the April to June quarter. This led some economists to revise their growth forecasts. Goldman Sachs adjusted its forecast for China’s annual economic growth to 4.9% from a previous estimate of 5%, while JP Morgan reduced its full-year outlook for China’s 2024 GDP growth to 4.7% from an earlier projection of 5.2%.
South Korea’s Kospi added 0.3% to 2,869.15, and Australia’s S&P/ASX 200 edged 0.1% lower to 8,011.10.
The dollar inched up from five-week lows as investors weighed the possibility of a September rate cut following comments by Federal Reserve Chairman Jerome Powell and the rising odds of former President Donald Trump’s re-election.
The Japanese yen weakened in Asian hours after reaching a one-month high of 157.165 to the dollar on Monday, keeping traders alert for potential intervention by Tokyo.
On Wall Street, the S&P 500 rose by 0.3%, closing at 5,631.22, just shy of its all-time high set last week. The Dow Jones Industrial Average climbed by 0.5% to 40,211.72, setting its own record, while the Nasdaq Composite index added 0.4% to 18,472.57, ending slightly short of its high.
The yield on 10-year US Treasury bonds increased to 4.22% from 4.19% late on Friday.
Related Topics: UK economy, FTSE 100, Pound, Dow Jones Industrial Average, Cost of living crisis, Global economy.
