Asian stocks saw varied movement on Monday amid a backdrop of economic data and political developments. Key indices were impacted by disappointing growth figures from China and uncertainties stemming from an attempted assassination of former U.S. President Donald Trump.
Markets across the region navigated thin trading volumes due to a holiday in Japan. Despite this, Wall Street’s strong performance on Friday, nearing record highs amid expectations of imminent interest rate cuts, provided some support to Asian equities.
In China, both the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes struggled in volatile trading, while Hong Kong’s Hang Seng index declined by 1.1%. China’s second-quarter gross domestic product growth of 4.7% fell short of expectations, driven by subdued consumer spending and demand, offsetting gains in industrial production and manufacturing.
Further exacerbating concerns were lackluster retail sales data for June, underscoring fears of slowing economic momentum, heightened unemployment, and a downturn in the property market, which collectively dampened consumer expenditure.
Attention shifted to the Third Plenum of the Chinese Communist Party, slated to commence later on Monday, where policymakers are expected to signal potential stimulus measures to bolster economic activity.
Elsewhere in Asia, South Korea’s KOSPI edged down by 0.1%, reflecting broader unease over regional economic outlooks.
In contrast, Australia’s ASX 200 surged 0.8% to a record high of 8,037.30 points, buoyed by strong performances in banking and mining stocks. Heavyweights such as BHP Group Ltd and Rio Tinto Ltd drove gains, with upcoming quarterly production reports adding further optimism.
Despite less robust economic signals domestically, Australian equities benefited from investor interest in economically sensitive sectors amid expectations of forthcoming interest rate reductions globally. This trend mirrored broader international markets, where sectors less exposed to the technology sector’s recent volatility became more attractive to investors.
The outlook remained cautiously optimistic as markets awaited further developments in both economic data releases and geopolitical events, particularly with regards to U.S. political dynamics ahead of the 2024 presidential election.
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