Asia markets mixed amid global political uncertainty, China’s weaker-than-expected inflation data

Asia-Pacific markets trade mixed, the sentiment was dampened as investors reacted to China’s weaker-than-expected inflation data, and amid concerns over prolonged political instability. Ongoing political crises in South Korea and France, along with the collapse of Syrian President Bashar al-Assad’s regime, contributed to the uncertainty. Investors also digested a revision to Japan’s economic growth data. On Sunday, rebels ousted Syrian President Bashar al-Assad, ending the Assad family’s 50-year rule in a move that heightened fears of further instability in the Middle East. Japan ( NKY:IND ) rose +0.21% showed limited movement on Monday, the Japanese yen remained stable around 150 per dollar on Monday, continuing to trade within a narrow range for the past week as investors digested a revision to Japan’s economic growth data. Final figures revealed that Japan’s economy grew by 0.3% quarter-on-quarter in the three months to September, surpassing the preliminary estimate and market expectations of 0.2%. The gauge for Japan’s service sector was at 49.4 in November 2024, up from 47.5 in the previous month, unexpectedly exceeding market estimates of 47.3 and marking the highest figure since March. China ( SHCOMP ) fell -0.23% declined 0.2% to around 3,372, while the Shenzhen Component dropped 0.1% to 10,700 on Wednesday, with Chinese stocks struggling to build on recent gains as caution prevailed in the region following a political upheaval in South Korea . Consumer prices rose just 0.2% year-on-year in November , down from 0.3% in October and falling short of market expectations of 0.5%. Meanwhile, producer prices declined by 2.5% in November, a smaller drop than the 2.9% decline seen in the previous month. Investors are now turning their attention to this week’s Central Economic Work Conference, which will outline China’s economic priorities and targets for 2025. Hong Kong ( HSI ) fell -0.58% in the Monday morning session, trading around 19,868 following a rally in the prior session, with investors responding to China’s CPI and PPI data. India ( SENSEX ) fell -0.01% to 81,489 in early trading on Monday, marking their second consecutive session of losses, mainly dragged by consumer goods, metals, and pharmaceuticals. Australia ( AS51 ) rose +0.02% at 8,423 on Monday, as caution prevailed ahead of the Reserve Bank of Australia’s policy decision on Tuesday. The South Korean won ( USD:KRW ) depreciated past 1,430 per dollar, extending its losses from the previous week and remaining at its lowest level in over two years, as market sentiment remained soured amid growing concerns over prolonged political instability. Investors are also focused on central bank meetings in Canada and Australia later this week. In the U.S., on Friday, all three major indexes ended mixed , the S&P 500 and Nasdaq set new record highs fueled by a stronger-than-expected November jobs report that raised optimism about a Federal Reserve rate cut later this month. U.S. stock futures were little changed on Monday as investors await crucial inflation data later this week: Dow -0.11% ; S&P 500 -0.09% ; Nasdaq -0.04% . Investors also remained cautious ahead of US inflation data, expected to provide further guidance on the Fed’s interest rate decision this month. Additionally, traders are awaiting China’s November trade data, set for release on Tuesday, with expectations of slowing exports following a two-year high in October. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s consumer inflation falls below forecasts, drops to a five-month low in November Japan’s Q3 GDP growth revised higher to 0.3% Q/Q and 1.2% on annualized basis Australia reports largest trade surplus in eight months for Oct, driven by rebound in exports Japan services PMI revised higher to 50.5 in November amid growth in new orders South Korea to infuse additional capital to stabilize markets

Source: Seeking Alpha