Early on Monday, major Asian shares in the capital market declined, while investors continue to prepare for inflation data.
The fall of Asian shares after China’s central bank last week reinforced the message that interest rates would stay higher for longer.
It came at a period that investors were bracing up for inflation data from the U.S. and Europe.
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The yen was jittery near the closely watched 150 per dollar level amid intervention fears, after the Bank of Japan made no change to its dovish monetary policy.
S&P 500 futures ESc1, rose 0.3% while Nasdaq futures NQc1 gained 0.4%, after Hollywood writers union reached a preliminary labour agreement with major studios.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan, MIAPJ0000PUS dropped 0.5%, edging back to a 10-month low plunged.
Japan’s Nikkei N225, on the other hand, rose 0.9%, as investors bought beaten-down shares.
Chinese shares fell after a rebound on Friday, as property concerns and pre-holiday caution weighed.
The blue chips index CSI300 eased 0.5% and Hong Kong’s Hang Seng index, HSI slumped by 1.2% as Chinese property developers dived more than 3%.
China’s Economic Growth Might Go Below 4.8%
S&P on Monday lowered its forecast for China’s economic growth to 4.8% in 2023 from 5.2%, and to 4.4% in 2024 from 4.8%, saying the fiscal and monetary easing had remained limited.
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Asia-Pacific chief economist, says, “Policymakers’ emphasis on containing leverage and financial risks has increased the bar for macro stimulus”.
Markets will be looking for clues on whether China’s economy is regaining traction, with a week-long national holiday set to begin on Friday that will be a key test for consumer spending.
The big test in the week ahead would be the manufacturing and services PMIs on Saturday.
