Asia-Pacific markets showed a mixed performance on Monday as investors assessed key business activity figures across the region.
In China, the Caixin services purchasing managers’ index (PMI) rose to 52.2 in December, indicating the fastest expansion in the services sector since May 2024. Over the weekend, China’s central bank announced plans to adopt a “moderately loose” monetary policy in 2025 to boost economic growth. Meanwhile, Hong Kong’s PMI showed a decline from the previous month.
India reported a robust expansion in its services PMI, which rose to 59.3 in December, marking the fastest growth in four months. However, the reading fell short of analysts’ expectations of 60.5, though it surpassed November’s figure of 58.4.
Market reactions varied. Hong Kong’s Hang Seng Index initially opened higher after the PMI data but later dipped 0.27%, while mainland China’s CSI 300 edged lower.
Japan saw the sharpest losses, with the Nikkei 225 falling 1.62%, driven by declines in consumer cyclical stocks. The broader Topix index also dropped 1.23%. In contrast, South Korea’s Kospi rose 1.67%, and the small-cap Kosdaq gained 1.49%, despite ongoing political turbulence. Reports emerged that South Korea’s presidential security service chief refused to comply with efforts to arrest impeached President Yoon Suk Yeol. An earlier attempt to detain Yoon on charges of insurrection resulted in a standoff between investigators and security officials.
Australia’s S&P/ASX 200 traded just above the flatline after erasing earlier gains.
In the United States, markets ended a five-day losing streak on Friday, with a rally in tech stocks driving gains. The Nasdaq Composite climbed 1.77% to close at 19,621.68, while the S&P 500 added 1.26%. The Dow Jones Industrial Average also rose, finishing 0.8% higher.
