Asian stocks rise with Fed in focus, Chinese deflation woes weigh
Investing.com — Most Asian stocks rose on Monday, albeit marginally, as investors hunkered down before a string of key central bank meetings this week, while Chinese shares plummeted on continued signs of deflation in the country.
Regional markets took positive cues from Wall Street, after U.S. stock indexes rose on Friday following stronger-than-expected labor market data. The reading pointed to some resilience in the world’s largest economy, although it also saw traders pricing fewer chances of early interest rate cuts by the Federal Reserve.
U.S. stock futures were flat on Monday.
Japan’s Nikkei 225 was the best performer among its peers, up 1.6% as it recovered from steep losses seen last week. Hawkish signals from the Bank of Japan had battered local stocks, although the prospect of relatively loose monetary conditions in Japan still kept investors bullish on local stocks.
Broader Asian markets were a touch higher, although concerns over China and caution before a Federal Reserve meeting this week kept gains limited. While the central bank is widely expected to keep rates on hold, its outlook for 2024, particularly on when it plans to begin trimming rates, will be closely watched.
Australia’s ASX 200 rose 0.2%, while South Korea’s KOSPI added 0.1%. Beyond the Fed, interest rate decisions from the Bank of England, European Central Bank and Swiss National Bank are also on tap.
China’s blue chip Shanghai Shenzhen CSI 300 index sank 1.3% to its weakest level since early-2019, while the Shanghai Composite and Hong Kong’s Hang Seng also logged similar declines.
Data released over the weekend showed that Chinese consumer inflation fell at its fastest pace in three years in November, while producer inflation sank for a 14th
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