Asian Markets Mixed Despite Wall Street Rally and Economic Cooling
Asian equity markets showed a mixed performance on Monday, following gains on Wall Street last Friday. A weaker-than-expected US employment report led investors to scale back expectations of further Federal Reserve monetary tightening, providing a positive backdrop for Asian markets.
The Nikkei 225 in Japan rose 2.23%, reaching a three-month high near 70,000, while the Japanese yen remained steady around 157.8 per dollar. In contrast, Hong Kong’s Hang Seng Index fell 0.26% to 23,908, and India’s SENSEX rebounded 0.37% to 72,546 after four straight sessions of losses.
Commodities saw declines, with WTI crude oil dropping toward $90 per barrel, while spot gold steadied near $4,150 an ounce. In South Korea, the KOSPI markets closed, and the South Korean won traded around 1,345 per dollar. Meanwhile, Australia’s AU200AUD shares remained flat, extending gains for a second session.
Despite the stock market rally, regional economic indicators showed signs of cooling. Japan’s S&P Global Services PMI fell to 51.3 in September, and consumer confidence slightly dipped to 35.4. In Australia, the S&P Global Australia Services PMI Business Activity Index dropped to 51.9, while the Melbourne Institute Monthly Inflation Gauge rose 0.3% in September, marking its lowest reading since June.