Asian stock markets showed a predominantly positive trend on Monday, following a week where Wall Street approached record highs. The Hang Seng Index in Hong Kong increased by 0.4%, reaching 26,505.18, while the Shanghai Composite experienced a modest rise of 0.2%, settling at 3,878.57. However, underlying concerns about the state of China’s economy remain, fueled by analysts’ assertions that the latest data for August fall short of demonstrating robust growth. This is particularly noteworthy in light of the adverse impacts stemming from U.S. tariff policies instituted by President Donald Trump.
Recent figures revealed a 3.4% year-over-year increase in China’s retail sales and a 5.2% rise in factory output. Stephen Innes, managing partner at SPI Asset Management, noted, “The underlying flow is shifting. For years, Beijing leaned on exports as the carry trade that kept growth rolling even as property cracked. But with Trump’s tariffs slicing through supply chains, that leg of the trade is gone.”
In contrast, Australia’s S&P/ASX 200 index dipped by 0.3% to 8,836.50, while South Korea’s Kospi added 0.4%, finishing at 3,409.94. Trading was suspended for a national holiday in Japan, preventing local markets from participating in the day’s activities.
On Wall Street, major indices closed the previous week on a mixed note. The S&P 500 slipped slightly, down less than 0.1% from the all-time high recorded on Thursday, ending the session at 6,584.29. The Dow Jones Industrial Average saw a more significant decline, dropping 273 points or 0.6%, to close at 45,834.22. In contrast, the Nasdaq composite gained traction, adding 0.4%, and closing at 22,141.10. Market optimism has been buoyed by speculation that the Federal Reserve will cut its main interest rate for the first time this year during its upcoming meeting. However, there are apprehensions that failure to follow through on such cuts could lead to a market downturn due to disappointment.
In the bond market, the yield on the 10-year Treasury note slightly recovered, increasing to 4.06% from a previous 4.01%. Meanwhile, crude oil prices saw a rise in energy trading, with benchmark U.S. crude climbing by 42 cents to $63.11 a barrel, while the international standard, Brent crude, added 41 cents, reaching $67.40 per barrel. In the currency markets, the U.S. dollar weakened slightly against the Japanese yen, adjusting to 147.45 from 147.65 yen, and the euro remained stable, trading at around $1.1730, a minor change from $1.1732.
