Global Markets:
- Asian Stock Markets : Nikkei up 0.14%, Shanghai Composite down 0.57%, Hang Seng down 1.8% ASX up 0.18%
- Commodities : Gold at $2528.35 (0.09%), Silver at $28.75 (-1.31%), Brent Oil at $76.30 (-0.79%), WTI Oil at $73.12 (-0.58%)
- Rates : US 10-year yield at 3.924, UK 10-year yield at 4.016, Germany 10-year yield at 2.2900
News & Data:
- (CAD) GDP m/m 0.0% vs 0.1% expected
- (USD) Core PCE Price Index m/m 0.2% vs 0.2% expected
Markets Update:
Asia-Pacific markets declined on Monday as investors reacted to China’s recent economic data and anticipated more significant reports later this week. Over the weekend, China released its official purchasing managers’ index (PMI) for August, revealing that the manufacturing PMI had dropped to 49.1, a six-month low, indicating a faster contraction compared to July’s 49.4. This figure also fell short of economists’ median forecast of 49.5, marking the fourth consecutive month of contraction. However, China’s non-manufacturing PMI slightly improved to 50.3 from July’s 50.2.
Investors are now awaiting key economic data from the region, including South Korea’s inflation figures, Australia’s second-quarter GDP data, and Japan’s reports on pay and household spending.
In Hong Kong, the Hang Seng Index plunged 1.8%, with the CSI300 down 1.2%, driven by declines in real estate stocks. New World Development was the largest loser, with shares plummeting 14.14% after forecasting a significant financial loss for 2024. Meanwhile, China’s potential policy allowing homeowners to refinance up to $5.4 trillion of mortgages is seen as supporting consumption rather than reviving the housing market.
Japan’s Nikkei 225 briefly crossed the 39,000 mark but ended slightly below the flatline. South Korea’s Kospi rose 0.44%, while Australia’s S&P/ASX 200 gained 0.18%. In contrast, U.S. markets closed with record highs on Friday, driven by strong gains in the Dow Jones, S&P 500, and Nasdaq, following key inflation data closely monitored by the Federal Reserve.
Upcoming Events:
- 11:01 PM GMT – GBP BRC Retail Sales Monitor y/y
