Asian Markets: Weak Chinese Data and Central Bank in Focus

Asian markets started the week mixed, with concerns over Chinese economic data and looming central bank decisions. The Hang Seng index fell while the ASX gained. Typhoon Bebinca and key data releases are also in focus as investors await U.S. Federal Reserve policy updates and China’s loan prime rate announcement.

Global Markets:

• Asian Stock Markets: Nikkei down 0.73%, Shanghai Composite down 0.42%, Hang Seng down 0.18%, ASX up 0.25%
• Commodities: Gold at $2,615.35 (0.14%), Silver at $31.19 (1.01%), Brent Oil at $71.60 (0.09%), WTI Oil at $67.80 (0.08%)
• Rates: U.S. 10-year yield at 3.645%, U.K. 10-year yield at 3.769%, Germany 10-year yield at 2.149%

Asian Markets: Weak Chinese Data and Central Bank in Focus

Markets Update:

Asian markets displayed a mixed performance at the start of the week as concerns over China’s economic data weighed heavily. Hong Kong’s Hang Seng index fell 0.76% following a string of disappointing economic indicators from China. August data revealed factory output, retail sales, and investment figures missed expectations. The urban jobless rate reached a six-month high, and home prices are falling at their fastest rate in nearly a decade.

The focus is also on the upcoming U.S. Federal Reserve meeting, where an interest rate cut is anticipated. Meanwhile, Australia’s S&P/ASX 200 index saw a modest gain of 0.25%, and Taiwan’s Weighted Index experienced a slight increase. Mainland China and South Korea closed for the Mid-Autumn Festival, and Japan shut for Respect for the Aged Day.

Typhoon Bebinca is impacting the region and causing hundreds of flight cancellations in China.

Shanghai is preparing for the strongest storm since 1949. Investors are keenly awaiting critical economic data and central bank decisions. In August, rising inflation in Japan could prompt the Bank of Japan to maintain its current policy stance. The Japanese yen strengthened to 140.49 against the U.S. dollar, potentially marking its most substantial level over a year. China will announce its one- and five-year loan prime rates on Friday, currently set at 3.35% and 3.85%, respectively. 

In the U.S., the major indexes ended positively last week after a challenging September start. The S&P 500 rose 0.54% to 5,626.02, the Nasdaq Composite gained 0.65% to 17,683.98, and the Dow Jones Industrial Average increased by 0.72% to 41,393.78.

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