Explore Asian market fluctuations amid China deflation in stocks market concerns and global economic shifts. Stay informed on market updates and upcoming events.
Global Market Overview
- Asian Stock Markets: Nikkei rises by 1.57%, Shanghai Composite up by 0.82%, Hang Seng decreases by 0.47%, ASX shows a marginal increase of 0.07%
- Commodity Prices: Gold at $2014.5 (0.02%), Silver at $23.13 (0.34%), Brent Oil at $76.56 (2.82%), WTI Oil at $71.77 (0.73%)
- Interest Rates: US 10-year yield at 4.257, UK 10-year yield at 4.054, Germany 10-year yield at 2.259
News & Data
- (USD) Average Hourly Earnings m/m 0.4% vs 0.3% expected
- (USD) Non-Farm Employment Change 199K vs 184K expected
- (USD) Unemployment Rate 3.7% vs 3.9% expected
Asian Market Reacts to China Deflation in Stocks
Market Update
Amidst China’s economic challenges, its stock market experienced a downturn on Monday fueled by persistent deflationary pressures and weakened domestic demand. In contrast, Japan witnessed a surge in its stock market, prompted by speculation regarding a potential delay in the country’s anticipated interest rate hike.
Recent data for November from China unveiled a more significant-than-expected decline in consumer prices, with the consumer price index dropping by 0.5% year-on-year, surpassing the predicted 0.1% decline. Additionally, the producer price index (PPI) recorded a 3% year-on-year decrease, marking the 14th consecutive month of decline and the most rapid fall since August.
China’s CSI 300 index fell by 1.28% at the market’s opening. Meanwhile, Hong Kong’s Hang Seng index lagged with a 0.9% drop, contrasting with other markets in the Asia-Pacific region. Conversely, Japan’s Nikkei 225 surged by 1.56%, and the broader Topix index exhibited a more moderate increase of 1.35%.
The week’s attention centers on the impending monetary policy decision of the US Federal Reserve, widely anticipating the maintenance of the policy rate within the 5.25% to 5.5% range. Meanwhile, Australia’s S&P/ASX 200 began the week with a 0.21% rise, aiming for a three-month high. South Korea’s Kospi index struggled to gain direction, showing a minimal 0.06% increase, while the small-cap Kosdaq demonstrated a more significant rise of 0.92%. In the US, all three major indexes reported gains on Friday, with the S&P 500 reaching a new yearly high, indicating a robust economy and moderated inflation.
Upcoming Events
11:30 PM GMT – AUD Westpac Consumer Sentiment
11:50 PM GMT – JPY PPI y/y
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