Stock Markets Edge Up as Asia Awaits Data from China and Japan

Asian stock markets started the week positively, with most indices posting gains during Monday trading amid a relatively calm period for economic data in the region. Investors closely watch for updates from China, Japan, and Australia but do not anticipate any significant surprises.

Market Highlights
The Nikkei 225 in Japan bucked the trend, falling 0.8%, while the broader Topix index slipped 0.47%. Japan’s markets faced headwinds ahead of key trade data on Tuesday and inflation figures due Friday. In contrast, South Korea’s Kospi surged 2.09%, fueled by robust performance in tech giant Samsung Electronics. The Kosdaq also gained, rising 0.93%.

Hong Kong’s Hang Seng Index rose 1.38%, and China’s CSI 300 climbed 0.78%, reflecting optimism ahead of Wednesday’s announcement on China’s loan prime rates (LPR). Analysts expect no changes, with the one-year LPR at 3.1% and the five-year at 3.6%. Australia’s S&P/ASX 200 eked out a 0.17% gain as investors digested the upcoming release of central bank meeting minutes.

Stock Markets Edge Up as Asia Awaits Data from China and Japan

U.S. markets, however, closed in the red on Friday, weighed down by concerns about interest rates and sharp declines in pharmaceutical stocks. The Dow Jones Industrial Average lost 0.70%, the S&P 500 fell 1.32%, and the tech-heavy Nasdaq dropped 2.24%. Pharma giants Amgen and Moderna suffered notable losses, driven by political developments.

Global Economic Calendar
This week’s spotlight in the Asia-Pacific region includes Japan’s headline inflation figures and China’s LPR decision. Australia’s central bank will also release minutes from its recent meeting, explaining the Reserve Bank of Australia’s monetary policy stance.

Commodities and Yields
In commodities, precious metals rose modestly. Gold increased 0.84% to $2,591.35 per ounce, while silver gained 0.8%, trading at $30.7. Crude oil prices showed little movement, with Brent crude at $71.14 per barrel (up 0.26%) and WTI crude at $67.2 per barrel (up 0.09%).

Government bond yields were mixed, with the U.S. 10-year yield at 4.434%, the UK 10-year at 4.470%, and Germany’s 10-year yield at 2.348%.

Retail Sales Data Disappoints
In the U.S., retail sales data released Monday showed mixed results. Core retail sales rose 0.1% in October, falling short of the 0.3% forecast. However, retail sales beat expectations, climbing 0.4% compared to the anticipated 0.3%.

Outlook
With few major catalysts, markets may see muted movements until key economic data is released later in the week. Global investors will also monitor the U.S. housing starts and foreign securities purchase reports scheduled for later today.

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