Asia Stocks Steady After Sharp Gains
Asian stocks rise; Nikkei hits 44,288 record; Shanghai up 1.1%, CSI 300 nears 2%.
S&P 500, Nasdaq hit record highs; Oracle rallies; Fed rate cut expected in September.
U.S. PPI falls 0.1%, Fed rate cut expected; mixed Asian markets; US-Japan tariff deal boosts confidence.
Asian Markets Stable Amid Mixed Economic Signals
Most Asian stock markets remained steady on Monday following robust gains last week. South Korea’s KOSPI hit new record levels, while Chinese equities held near decade-high valuations despite recent economic data falling short of expectations.
Chinese factory output and retail sales both missed forecasts, with industrial production expanding at 5.2% year-over-year in August—slower than July’s 5.7% and below estimates. Retail sales grew by 3.4%, underperforming July’s 3.7% and analysts’ 3.8% projections. This tepid data underscores ongoing fragility in China’s economic momentum despite earlier signs of stabilization.
Chinese Stocks Boosted by Tech Rally and Trade Optimism
Blue-chip Chinese shares led gains amid volatile trading, driven by technology sector strength fueled by positive sentiment around U.S. AI developments. The Shanghai Composite inched up 0.2%, hovering just below ten-year peaks, while the CSI 300 surged nearly 1%, close to a three-year high. Hong Kong’s Hang Seng index also advanced 0.3%, near a four-year top.
Concurrently, high-level trade talks between China and the U.S. commenced in Madrid, focusing on tariffs, export controls, and digital economy issues, following a July-agreed 90-day truce. Ahead of the summit, China launched investigations into alleged U.S. trade discrimination on chips and dumping, bolstering confidence in domestic chipmakers potentially capturing market share amid tighter U.S. restrictions.
Global Outlook Hinges on U.S. Data and Fed Decision
Looking ahead, the region’s market trajectory is likely to depend on upcoming U.S. economic figures and the Federal Reserve’s interest rate decision later this week. Investors are optimistic about a possible rate cut of at least 25 basis points, encouraged by hints of softening in the U.S. labor market and persistent inflation.
On Monday, South Korea’s KOSPI climbed 0.6% to a record 3,420.23 points, led by semiconductor companies SK Hynix and Samsung Electronics. Market-friendly policy signals, including delays to capital gains tax reforms, were also welcomed.
Japan’s markets were closed for a holiday but remain near record highs, buoyed by tech and industrial sector gains tied to U.S. AI enthusiasm.
Elsewhere, Australia’s S&P/ASX 200 slipped 0.2%, Singapore’s Straits Times Index was flat, and India’s Nifty 50 opened largely unchanged.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
