Asian stocks closed mixed on Monday during thin holiday trading, as a slew of disappointing Chinese economic data and caution ahead of key central bank policy meetings this week influenced market sentiment. The Federal Reserve (Fed), Bank of Japan (BoJ), and Bank of England (BoE) are all set to meet, with expectations that the BoJ and BoE will maintain current interest rates.
Investors also kept an eye on upcoming U.S. retail sales and industrial production data.
In other news, former U.S. President Donald Trump confirmed that he is "safe and well" following an apparent assassination attempt on Sunday.
The dollar weakened while gold remained near record highs, as investors speculated on the likelihood of a significant rate cut by the Federal Reserve on September 18.
Several markets in the region, including China, Japan, South Korea, and Indonesia, were closed for holidays. Hong Kong's Hang Seng Index gained 0.31% to close at 17,422.12, recovering from an early decline prompted by disappointing Chinese economic data released over the weekend.
In August, Chinese industrial production and retail sales grew less than expected, home prices dropped at their fastest rate in nine years, and unemployment increased. These factors heightened concerns about economic recovery and strengthened the argument for additional economic stimulus. China's central bank is expected to set its one-year and five-year loan prime rates on Friday.
Australian markets reached a new record high, bolstered by rising bullion prices that benefited gold miners and optimism over a potential interest rate cut by the Federal Reserve, which boosted bank stocks. However, energy and healthcare stocks lagged, dampening overall gains. The benchmark S&P/ASX 200 rose 0.27% to 8,121.60, while the broader All Ordinaries index increased by 0.21% to 8,341.10.
In contrast, New Zealand's benchmark S&P/NZX-50 index fell 1% to 12,704.39.
U.S. stocks closed higher on Friday, driven by growing expectations of interest rate cuts by the Federal Reserve and other central banks. Positive sentiment was further supported by a survey indicating that consumer sentiment rose to a four-month high in early September, with one-year inflation expectations declining for the fourth consecutive month. The tech-heavy Nasdaq Composite gained 0.7%, the S&P 500 added 0.5%, marking their best weekly gains of 2024, while the Dow climbed 0.7%.
