Asian stocks faced a challenging start to the week, marked by a decline in South Korean markets amidst a hectic schedule for central bank meetings anticipated to ease borrowing rates. This coincided with the U.S. awaiting critical inflation figures that could determine further policy loosening.
In China, unforeseen data revealed a significant dip in the consumer price index for November, dropping 0.6%, which dragged annual inflation down to a mere 0.2%. This development accentuates the pressing need for substantial economic stimulus measures.
Despite initial concerns, overall sentiment stayed relatively positive following U.S. payroll data for November, which highlighted a recovery strong enough to mitigate fears of an economic slowdown yet modest enough not to hinder an expected interest rate cut by the Federal Reserve next week.
In regional markets, Hong Kong’s Hang Seng index dipped 0.10% to 19,846.93, while mainland China’s Shanghai Composite index recorded a rise of 0.40%, reaching 3,417.62. Japan’s Nikkei 225 saw an increase of 0.29% to 39,204.50.
Initially gaining ground, South Korean markets rapidly lost steam, with the Kospi index dropping 1.81% to 2,384.22 and Kosdaq falling 0.92% to 670.94. Meanwhile, Australia’s S&P/ASX 200 index dipped slightly by 0.1% to 8,413.10.
Commodity markets showed mixed signals early in the Asian session. Oil prices were volatile, amid concerns over sluggish Chinese demand and escalating Middle East tensions following the ousting of Syrian President Bashar al-Assad by rebels. Brent crude futures decreased by 1 cent to $71.11 per barrel, while U.S. West Texas Intermediate crude increased by 1 cent to $67.21 per barrel. In contrast, spot gold experienced a marginal increase, standing at $2,667 per ounce.
