Asia-Pacific Markets Focus: Nikkei down 0.82%, Kospi up 0.91%

Asia-Pacific markets mixed: Nikkei down 0.82%, Kospi up 0.91%. South Korea faces crises, China’s PMI awaits, and U.S. markets drop as global tensions persist.

Asia-Pacific markets exhibited mixed trends on Monday as regional economic and political developments shaped investor sentiment. Japan’s Nikkei 225 fell 0.82%, while the broader Topix index dipped 0.30%, weighed down by weak factory activity. However, the au Jibun Bank Japan Manufacturing PMI for December improved slightly to 49.6, reflecting a slower contraction in production and new orders.

In China, the Shanghai Composite rose modestly by 0.09%, and the CSI 300 climbed 0.53% as investors awaited Tuesday’s manufacturing PMI data. Meanwhile, Hong Kong’s Hang Seng Index slipped 0.33%, reflecting cautious trading ahead of the New Year holiday.

Australia’s S&P/ASX 200 dropped 0.32% as concerns over commodity prices lingered. South Korea’s Kospi bucked the regional trend, gaining 0.91%, with the tech-heavy Kosdaq surging 1.74%.

South Korea dealt with multiple crises, including its deadliest airline crash in decades. On Sunday, a Jeju Air plane crashed at Muan International Airport, claiming 179 lives. Acting President Choi Sang-mok ordered an immediate inspection of the nation’s airline safety systems. Shares of Jeju Air plunged 8.53%, and broader airline stocks displayed high volatility.

Asia-Pacific Markets Focus: Nikkei down 0.82%, Kospi up 0.91%

Adding to the turmoil, South Korea’s parliament impeached acting President Han Duck-soo following a brief martial law decree under his predecessor. Meanwhile, the nation’s economic performance showed signs of strain, with industrial output contracting by 0.7% in November, exceeding expectations of a 0.4% decline.

Commodities markets were relatively stable, with gold trading at $2,632.35 per ounce, down 0.04%, and silver edging up 0.08% to $29.94. Brent crude oil rose 0.06% to $73.89, while WTI crude gained 0.05% to $70.64. U.S. crude oil inventories fell sharply by 4.2 million barrels, significantly more than the expected 0.7 million barrel decline.

Global bond markets showed mixed results, with the U.S. 10-year Treasury yield at 4.617%, the UK 10-year gilt yield at 4.626%, and Germany’s 10-year bund yield at 2.389%.

On Friday, U.S. markets ended lower, led by technological stock declines. The Dow Jones Industrial Average dropped 0.77%, the S&P 500 fell 1.11%, and the Nasdaq Composite slid 1.49%, despite overall weekly gains. Investors are closely watching upcoming economic data, including the U.S. Pending Home Sales report, expected at 3:00 PM GMT.

With geopolitical tensions and economic data releases on the horizon, Asia-Pacific markets remain sensitive to global developments. Investors are bracing for China’s manufacturing PMI release on Tuesday, which may set the tone for the region’s performance in the coming weeks.

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