Asia report: Markets mixed after weekend data dump from China

Asia-Pacific markets presented a mixed picture on Monday amid a relatively quiet trading session, as investors evaluated recent economic data from China and looked ahead to the US Federal Reserve's upcoming monetary policy announcement.

Several major markets in the region were closed due to public holidays, contributing to subdued trading activity.

“Following the broadly positive signals from global markets on Friday, Asian stock markets are trading mixed on Monday, with some of the region's key markets closed,” said Patrick Munnelly at TickMill.

“Over the weekend, China's economic data was disappointing, as industrial output growth declined to a five-month low in August and retail sales and new home prices continued to decline.

“If China is to attain its 2024 growth objective of approximately 5%, the data supports the need for further economic stimulus by the year's end.”

Munnelly noted that traders were cautious ahead of central bank meetings in the US, Japan and the UK later in the week.

“Market sentiment is being assisted by optimism regarding the likelihood of a minimum 25 basis point reduction in the US interest rate.”

Markets mixed on quiet day for Asia-Pacific region

Japan's markets were closed in observance of Respect for the Aged Day, while China's exchanges remained shut for the Mid-Autumn Festival.

South Korea also halted trading for the Chuseok holiday.

In Hong Kong, the Hang Seng Index rose by 0.31% to close at 17,422.12 points.

The uptick was led by gains in key stocks such as New World Development, which climbed 4.98%, Techtronic Industries, up 3.71%, and Budweiser Brewing Company, which increased by 2.88%.

Australia's S&P/ASX 200 index advanced by 0.27%, ending the day at 8,121.60 points.

Alcoa Corporation saw a significant boost of 5.87%, making it one of the top performers.

Other notable gainers included ZIP Co, up 4.33%, and Domain Holdings Australia, which rose by 4.29%.

Contrasting with its regional peers, New Zealand's S&P/NZX 50 index fell by 1% to 12,704.39 points.

The decline was driven by losses in companies like Vista Group International, which dropped by 7.36%, Meridian Energy, down 3.76%, and A2 Milk Company, which decreased by 3.73%.

In currency markets, the dollar was last down 0.65% on the yen to trade at JPY 139.93, while it slipped 0.56% against the Aussie to AUD 1.4833.

The greenback also decreased 0.57% on the Kiwi to change hands at NZD 1.6148.

Oil prices experienced an uptick, with Brent crude futures last up 0.75% on ICE at $72.15 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.96% to $69.31.

China data dump reveals several disappointing figures

In economic news, China's economy showed signs of slowing in August, with key indicators such as retail sales, industrial production, and fixed asset investment growing at a pace slower than anticipated.

Data released by the National Bureau of Statistics on Saturday revealed that the urban unemployment rate climbed to a six-month high, while property prices fell at their fastest annual rate in nine years.

Retail sales grew 2.1% year-on-year in August, missing economists' expectations of a 2.5% increase and down from a 2.7% rise in July.

Online sales of physical goods edged up by less than 1% compared to the same period last year, suggesting subdued consumer spending.

Industrial production expanded by 4.5% in August from a year earlier, below the forecasted 4.8% growth and slower than July's 5.1% increase.

Fixed asset investment for the January-to-August period rose by 3.4%, slightly underperforming the expected 3.5% growth.

Within the sector, infrastructure and manufacturing investments showed a deceleration on a year-to-date basis compared to the previous month.

The real estate market continued to struggle, with investment in the sector declining by 10.2% through August, mirroring the pace of decline seen in July.

Property prices experienced their steepest year-on-year drop in nine years, highlighting ongoing challenges in the housing market.

The urban unemployment rate ticked up to 5.3% in August from 5.2% in July.

The National Bureau of Statistics attributed the rise to the influx of recent graduates entering the job market, noting that stabilising employment would require additional efforts.

Youth unemployment remained a concern, with the jobless rate for individuals aged 16 to 24 who are not in school reported at 17.1% in July.

The statistics bureau has been releasing this figure separately shortly after the overall unemployment data this year.

Reporting by Josh White for Sharecast.com.