Asia-Pacific markets mostly declined on Monday, with investors showing concern over China’s latest economic measures and weak inflation figures, signaling ongoing challenges in the world’s second-largest economy.
China’s Underwhelming Stimulus and Lower Inflation
China announced a 10 trillion yuan ($1.4 trillion) five-year stimulus plan aimed at alleviating local government debt, yet analysts remain skeptical of its potential to spur significant economic growth. Meanwhile, inflation in China dropped to 0.3% in October, missing expectations of 0.4% and marking the lowest level in four months. This second consecutive monthly drop in inflation added to concerns over China’s economic recovery trajectory.
Singles’ Day, China’s annual shopping event comparable to Black Friday, also began Monday. According to ING, the event may reveal consumer sentiment in China, with anticipated growth in value-for-money purchases and online sales expected to outpace broader consumption trends.
Market Performance Across Asia-Pacific
Hong Kong’s Hang Seng index fell 1.62% in its final trading hour, while mainland China’s CSI 300 index bucked the trend, edging up 0.66% to 4,131.13. In Japan, the Nikkei 225 rose slightly by 0.09%, closing at 39,533.32, while the Topix index dipped marginally by 0.09% to 2,739.68.
Elsewhere, South Korea’s Kospi fell 1.15% to close at 2,531.66, reaching its lowest level since September 11. The Kosdaq index also dropped 1.96%, ending the day at 728.84. Australia’s S&P/ASX 200 was down 0.43%, closing at 8,266.2.
U.S. Markets Soar Amid Pro-Crypto Sentiment
The U.S. markets wrapped up their best week in a year following President-elect Donald Trump’s pro-crypto stance, as evidenced by the Dow Jones climbing 259.65 points, or 0.59%, to a new peak of 43,988.99. The S&P 500 also gained 0.38% to finish at 5,995.54, while the Nasdaq Composite inched up by 0.09% to 19,286.78.
