Asian stock markets delivered a mixed performance on Monday, following the release of China's mixed economic indicators. Attention is now directed towards the upcoming decisions by the Bank of Japan and the Federal Reserve concerning interest rates this week.
The U.S. dollar approached a three-week high against major currencies, while the Japanese yen struggled to rebound after experiencing its most significant weekly decline since September. This came amid speculation that the Bank of Japan might maintain its current interest rates.
In Asian trading, gold prices saw an upward tick, whereas oil prices fell due to concerns over China's demand. The Shanghai Composite Index in China slipped by 0.16 percent to close at 3,386.33. Investors weighed mixed data against promises by Chinese regulators to stabilize the markets.
Hong Kong's Hang Seng Index dropped by 0.88 percent to 19,795.49, despite reports suggesting that China could cut interest rates and the reserve requirement ratio timely next year.
Official data from China revealed a mixed economic performance for November. Industrial production expanded at a faster pace, and house price declines slowed, though retail sales growth softened, underlining the necessity for further stimulus to ensure stable growth.
In Japan, markets ended in negative territory after a volatile session, reflecting caution ahead of the Bank of Japan's two-day policy meeting starting Wednesday. The Nikkei Average concluded slightly down at 39,457.49, and the broader Topix Index decreased by 0.30 percent, closing at 2,738.33.
Seoul's stock market also saw slight losses following the impeachment of President Yoon Suk Yeol over the weekend. The Kospi Index edged down by 0.22 percent to 2,488.97, reversing early gains due to profit-taking after a four-day rally. Notable declines were observed in Samsung Electronics, Hyundai Motor, and Kia Corp, dropping 1-3 percent, while SK Hynix surged by 2.2 percent.
In Australia, the markets fell, mainly influenced by declines in technology and mining stocks. The benchmark S&P/ASX 200 index dropped 0.56 percent, closing at 8,249.50, while the broader All Ordinaries Index fell by 0.66 percent to 8,494.
In contrast, across the Tasman Sea, New Zealand's benchmark S&P/NZX-50 Index saw a slight rise of 0.34 percent, reaching 12,797.33.
In the United States, stock markets showed fluctuating trends before ending with narrow mixed results on Friday. The increase in Treasury yields countered Broadcom's optimistic AI-driven sales forecast. The Dow Jones Industrial Average declined by 0.2 percent, marking its seventh consecutive session of losses, the longest losing streak since 2020. Meanwhile, the technology-focused Nasdaq Composite slightly rose by 0.1 percent, and the S&P 500 concluded marginally lower.
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