Markets in mainland China and South Korea are closed Monday for the Mid-Autumn festival. Japan markets are closed for Respect for the Aged Day. The Hong Kong market reacts to China’s disappointing economic data.
Typhoon Bebinca has canceled hundreds of flights in China, and Shanghai is expected to be hit by the strongest storm since 1949. Asia-Pacific markets were mostly higher on Monday as investors parsed through economic data from China and awaited the Federal Reserve’s monetary policy move. Hong Kong’s market was up 0.13% as of its final hour of trading, reversing course in a choppy session.
Over the weekend, August factory output, retail sales, and investment numbers missed expectations. The urban jobless rate rose to a six-month high, while year-on-year home prices fell at their fastest pace in nine years. The Fed is meeting on Tuesday and Wednesday, with central bankers expected to cut rates for the first time since 2020.
Impact of China’s economic data
Australia’s ASX 200 rose 0.27% to close at 8,122.60. The Hang Seng Index added 0.42% to end at 21,850.08.
Asian investors also await a swath of the region’s critical data and central bank decisions. According to a Reuters poll, Japan’s inflation is expected to tick higher in August, which backs the case for the Bank of Japan to stay hawkish as the board sets its policy on Friday. The central bank is anticipated to keep the rate unchanged.
The Japanese yen strengthened to trade at 139.56 against the greenback, its strongest since July 2023. China is poised to set its one- and five-year loan prime rates on Friday. The one-year rate, which affects most new and outstanding loans, is expected to hold, while the five-year rate, which influences the pricing of mortgages, is currently at 3.85%.
After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green. The S&P 500 index advanced 0.54% to close at 5,626.02, the Nasdaq Composite added 0.65% to 17,683.98, while the Dow Jones Industrial Average jumped 0.72% to close at 41,393.78.
