Asian stocks showed mixed performance on Monday, as U.S. stocks wrapped up their strongest week of the year and approached record highs. The Hang Seng in Hong Kong fell by 0.3% after data indicated a slowdown in China’s economy for August, with factory output, retail sales, and investment figures missing expectations. This news, coupled with a rise in the unemployment rate, poses challenges for China’s fragile economy.
Australia’s S&P/ASX 200 rose by 0.4%, while markets in Japan, mainland China, and South Korea were closed for a holiday. Investors are eagerly awaiting the Federal Reserve’s policy meeting this week, where the first interest rate cut since 2020 is anticipated. The Bank of Japan is expected to keep their rates unchanged during their upcoming policy meeting.
The Japanese yen strengthened against the dollar, with the dollar dropping to 140.53 yen from 140.82 yen. U.S. futures and oil prices saw an increase. In the U.S., the S&P 500 rose by 0.5% to 5,626.02 on Friday, marking its fifth consecutive gain and coming close to its all-time high set in July.
The Federal Reserve, after aiming to slow the economy to combat high inflation, is now focusing on boosting the job market and economy. The central bank faces a delicate decision on how much to cut rates, with expectations split between a traditional quarter-point cut and a larger half-point cut.
In the energy market, benchmark U.S. crude increased to $67.97 a barrel, while Brent crude rose to $71.77 a barrel. Traders and investors are keeping a close eye on developments that could impact stock and oil prices in the coming days.
