Asia report: Stocks mixed ahead of key economic releases
Asia-Pacific markets finished with a mixed performance on Monday, as investors eagerly awaited a series of critical economic data releases scheduled for later in the week.
Inflation data in Tokyo, widely regarded as a leading indicator for nationwide trends in Japan, was set to be unveiled on Tuesday.
South Korea would also release its inflation figures on the same day.
Meanwhile, the Reserve Bank of Australia was convening its final meeting for the year on Tuesday as well, and according to a Reuters poll, economists expected the bank to maintain interest rates at 4.35%.
“Stocks in the Asia-Pacific region had a mixed trading session with a slight inclination towards positivity following gains on Wall Street last Friday,” said TickMill market analyst Patrick Munnelly.
“The positive momentum on Wall Street was attributed to a decrease in yields and an increased likelihood of Federal Reserve rate cuts next year, despite Fed chair Powell’s reluctance.
“However, the region’s upside was limited due to a lack of significant macroeconomic news over the weekend and in anticipation of key events scheduled for the upcoming week.”
Munnelly noted that gold miners were boosted after the precious metal initially surged above $2,100 per ounce, reaching a fresh record high before retracing most of the initial spike.
“The Nikkei 225 index lagged, declining by 0.6%, and briefly approaching the 33,000 handle to the downside, influenced by recent currency strength.
“The Hang Seng and Shanghai Composite indexes traded indecisively, with the People’s Bank of China (PBoC) governor Pan’s repeated support pledges offset by a substantial net liquidity drain.
“Additionally, geopolitical frictions in the South China Sea added to the uncertainty.”
Attention was also on Evergrande’s windup hearing in a Hong Kong court, adjourned to 29 January, which Munnelly said would provide the company with some breathing space to work on its restructuring proposal.
Markets mixed across the Asia-Pacific region
In Japan, the Nikkei 225 index recorded a decline of 0.6%, closing at 33,231.27, while the Topix index experienced a drop of 0.83% to settle at 2,362.65.
The declines in Tokyo were led by Mazda Motor, down 3.62%, Mitsubishi Motors, down 3.55%, and CyberAgent, down 3.54%.
Mainland China markets saw a minor dip, with the Shanghai Composite index down by 0.29% to 3,022.91 and the Shenzhen Component index declining by 0.62% to settle at 9,660.44.
Notable performers on the downside in Shanghai included Hunan Heshun Petroleum, which plummeted by 10%, and Bethel Automotive Safety Systems, down by 5.34%.
Hong Kong’s Hang Seng Index saw a more substantial drop, falling by 1.09% to close at 16,646.05.
Major decliners in the special administrative region included WuXi Biologics, down a significant 23.79%; WuXi AppTec, down 8.8%; and NetEase, which experienced a decline of 5.23%.
South Korea’s Kospi index defied the trend, posting a gain of 0.4% and closing at 2,514.95.
The gainers in Seoul included SK IE Technology, surging by an impressive 14.56%, and Posco Future M, which saw a substantial increase of 10.83%.
The S&P/ASX 200 index in Australia also delivered a positive performance, rising by 0.73% to reach 7,124.70.
Key gainers in Sydney included Star Entertainment Group, up 6.86%, and Genesis Minerals, which recorded a gain of 6.48%.
New Zealand’s S&P/NZX 50 index remained relatively stable, increasing by a marginal 0.003% to close at 11,367.81.
The performance in Wellington was led by Vista Group International, up 5.84%, and A2 Milk Company, which saw an increase of 3.62%.
In currency markets, the dollar was last 0.14% weaker on the yen at JPY 146.61, while it gained 0.3% on the Aussie to trade at AUD 1.5027.
The greenback was also stronger on the Kiwi, rising 0.25% to change hands at NZD 1.6146.
On the oil front, Brent crude futures were last down 0.66% on ICE at $78.36 per barrel, while the NYMEX quote for West Texas Intermediate slipped 0.69% to $73.56.
Reporting by Josh White for Sharecast.com.