Asian stock markets, for the most part, observed a rise on Monday, following better than expected Chinese industrial output and retail sales numbers. Moreover, the financial world is keenly awaiting several central bank announcements this week. The US dollar remained stable, the Japanese yen fluctuated, gold prices fell slightly, whereas oil observed an uptick, continuing the previous week's trend due to indications of dwindling supply.
Encouraged by a combination of economic data, Chinese markets closed higher on hopes of further stimuli. The benchmark Shanghai Composite index and Hong Kong's Hang Seng index rose to 3,084.93 and 16,737.12 respectively. The commencement of 2024 revealed Chinese industrial output, retail sales, and fixed asset investment figures exceeding projections.
Counterintuitively, a decline in property investment, unexpected unemployment surge, and underwhelming new bank loan data for February spurred anticipation for additional stimuli to stabilize the world's second-largest economy.
The Japanese market led the regional gains, despite a weakening yen, with investors ready for potential changes in the Bank of Japan's policy. Being widely predicted, the central bank may terminate its negative interest rates and yield curve control policies in response to substantial wage increases in large Japanese firms. Despite a decline in the country's core machinery orders in January, the Nikkei average notably surged to 39,740.44, while the broader Topix index also increased.
Companies like Honda Motor and Nissan Motor saw a growth in their stocks after announcing a partnership for developing electric vehicles.
South Korean stocks, particularly in the technology sector, increased notably, propelled by the upcoming Federal Open Market Committee (FOMC) meeting. The Kospi average ascended by 0.71%, stimulated by prominent tech firms like SK Hynix, LG Energy Solution and Samsung SDI.
Australian markets showed slight volatility before finishing on a slight rise, just before the Reserve Bank of Australia's interest rate decision. Although no change in interest rates is anticipated, the central bank is likely to retain its hawkish attitude due to persistent inflation. The mining segment reported losses caused by a drop in iron ore prices to their lowest since last May.
Contrastingly, New Zealand's benchmark S&P NZX-50 index witnessed a dip of 0.33% to reach 11,728.01. US markets lowered on Friday as investors anticipated cues from the forthcoming FOMC meeting. Data indicated manufacturing output rebound in February while March held consumer sentiment and inflation expectations steady. Conversely, The New York Empire State Manufacturing Index marked a decrease. Additionally, the tech-centric Nasdaq Composite and the S&P 500 extended losses for three consecutive days, while Dow receded by half a percent.
