Asian markets had a mixed start to the week after China disclosed that its economy grew less than expected at a rate of 4.7% annually in the previous quarter. Despite this, markets reacted calmly to a shooting incident at a rally for former President Donald Trump in Butler, Pennsylvania, being investigated as an attempted assassination of the presumed Republican nominee.
The futures for the S&P 500 and the Dow Jones Industrial Average saw a 0.2% increase. Meanwhile, China’s ruling Communist Party initiated a four-day meeting in Beijing to establish economic strategies for the upcoming decade, with a focus on reviving the declining property market and addressing significant local government debts.
The economic growth in China dropped from 5.3% in the first quarter to a 5% pace in the first half of the year, aligning with the government’s forecast for around 5% growth for 2024. In quarterly terms, the economy expanded by 0.7%. Analysts noted a mixed set of economic data releases from China, with Yeap Jun Rong of IG commenting on the uncertainty surrounding China’s economy.
Hong Kong’s Hang Seng decreased by 1.1%, and the Shanghai Composite slipped by 0.1%. The central bank of China maintained its medium-term lending rate at 2.5%. Markets in Tokyo were closed for a public holiday.
In Seoul, the Kospi declined by 0.1%, while the S&P/ASX 200 in Australia rose by 0.9%. Taiwan’s Taiex fell by 0.2%, and the SET in Bangkok dropped by 0.4%. U.S. stocks increased on Friday, with the S&P 500 closing at 5,615.35, the Dow at 40,000.90, and the Nasdaq at 18,398.45.
Bank of New York Mellon’s stock soared by 5.2%, and Wells Fargo’s stock fell by 6%. Inflation data showed unexpected increases in wholesale prices, signaling potential relief from concerns of escalating inflation. Traders anticipated a 94% chance of the Federal Reserve reducing interest rates in September.
In early Monday trading, U.S. benchmark crude oil rose to $82.39 per barrel, and Brent crude increased to $85.15 per barrel. The U.S. dollar fell to 158.03 Japanese yen, and the euro remained stable at $1.0893.
