Asian markets faced a mixed session on Monday, with most stocks retreating amidst concerns over China’s economic performance and lingering uncertainty in U.S. politics. The day saw subdued trading volumes due to a Japanese market holiday, while Wall Street’s recent gains provided some support to regional sentiment.
In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes struggled in choppy trading, remaining largely flat. Meanwhile, Hong Kong’s Hang Seng index declined by 1.1%, reflecting broader worries over weak GDP figures from China. The country’s gross domestic product expanded at a slower-than-expected rate of 4.7% year-on-year in the second quarter, attributed primarily to sluggish consumer spending and demand, despite improvements in industrial production and manufacturing.
Adding to economic concerns, June’s retail sales data underscored apprehensions about slowing growth, heightened unemployment, and a downturn in the property market, all contributing to reduced consumer spending in China. The upcoming Third Plenum of the Chinese Communist Party, scheduled for later in the day, is anticipated to provide further insights into potential stimulus measures.
Elsewhere in Asia, South Korea’s KOSPI edged lower by 0.1%, reflecting broader regional sentiment. Futures for India’s Nifty 50 index indicated a modestly positive start, buoyed by ongoing optimism surrounding Indian economic prospects.
However, Australia’s ASX 200 stood out as a strong performer, surging 0.8% to achieve a record high of 8,037.30 points. The rally was driven primarily by gains in heavyweight banks and mining stocks, including BHP Group Ltd and Rio Tinto Ltd , ahead of their quarterly production reports later in the week. Investor interest in economically-sensitive sectors, fueled by expectations of future interest rate cuts, also contributed to the ASX 200’s robust performance.
Despite mixed economic signals in Australia, the country’s relatively lower exposure to the technology sector enhanced its attractiveness compared to global counterparts, which have experienced volatility amidst inflated valuations in tech stocks.
The broader global outlook remains cautious, with market participants closely monitoring developments in U.S. politics following an assassination attempt on former President Donald Trump, who is set to appear at the 2024 Republican convention this week. Speculation surrounding the incident’s implications for the upcoming presidential race has added an additional layer of uncertainty to global markets.
In summary, while Asian markets grappled with varying economic indicators and geopolitical developments, Australia emerged as a standout performer, driven by sector-specific strengths and optimistic market sentiment.
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