Asian markets show varied performance in careful trading preceding US holiday and jobs data

Asian shares showed a mixed trend in cautious trading on Monday as the U.S. prepared for the Labor Day holiday with closed stock exchanges. Investors are eagerly anticipating the U.S. employment report due on Friday for insights into the state of the American economy. Japan’s Nikkei 225 rose by 0.4% to 38,797.61 in morning trading following a 7.4% increase in capital spending by Japanese companies in the April-June quarter as reported by the Finance Ministry. Japan’s economy, after a stagnant period, is displaying signs of recovery with revised GDP data set for release next week.
Australia’s S&P/ASX 200 fell by 0.3% to 8,067.00, South Korea’s Kospi rose by nearly 0.1% to 2,676.28, Hong Kong’s Hang Seng dropped 1.3% to 17,752.09, and the Shanghai Composite decreased by 0.5% to 2,828.84. Concerns over China’s growth prospects were raised as the National Bureau of Statistics reported a decline in August manufacturing PMI from 49.4 to 49.1, lower than market expectations.
Wall Street ended the previous week on a positive note, with the S&P 500 gaining 1% and closing August with a 2.3% increase for the month. The Dow Jones Industrial Average hit its fourth all-time high last week, rising by 0.6% on Friday, while the Nasdaq composite climbed 1.1%. Recent reports on the U.S. economy have been encouraging, with inflation, consumer spending, and income showing positive trends.
The Commerce Department’s personal consumption and expenditures report revealed a 0.2% price increase from June to July, slightly higher than the previous month. This deceleration in price growth is anticipated to prompt the Federal Reserve to cut interest rates for the first time in over four years, likely starting later this month. Additionally, Americans increased their spending by 0.5% in July compared to June, with incomes rising by 0.3%.
In energy trading, benchmark U.S. crude dropped by 47 cents to $73.08 a barrel, while Brent crude, the international standard, fell by 50 cents to $76.43 a barrel. The U.S. dollar slightly decreased to 146.16 Japanese yen from 146.18 yen, and the euro rose to $1.1055 from $1.1053.