Marketmind: More cheer rests on China PMI, Fed decision
By Jamie McGeever
(Reuters) — A look at the day ahead in Asian markets.
The big questions for investors in Asia this week are whether the rebound in sentiment towards China is sustained, and whether the Federal Reserve vindicates or cools the growing belief in markets that it will soon start cutting U.S. interest rates.
The Fed decision and Chair Jerome Powell's press conference on Thursday will dominate proceedings, and the biggest market-moving event in Asia is potentially the release of Chinese purchasing managers index data.
The regional calendar also includes PMIs from across the continent, fourth-quarter GDP figures from Taiwan, Hong Kong and the Philippines, and the latest inflation figures from Indonesia and South Korea.
Asian markets go into the week with their tails up. Bumper U.S. GDP data combined with surprisingly low inflation last week provided further evidence that the world's largest economy is steering clear of recession and headed for a soft landing.
This fueled a bullish burst of 'risk on' sentiment globally, while the positive reaction to China's efforts to support its markets and economy added further local cheer.
Beijing's latest move came on Sunday, with the securities regulator saying it will fully suspend the lending of restricted shares effective from Monday. Figures on Saturday, meanwhile, showed that industrial profits in China are shrinking at their slowest rate since October 2022.
China's CSI 300 index of leading shares snapped a three-week losing streak and rose 2%, the Shanghai Composite jumped 2.75% for its best week since July, and the MSCI Asia ex-Japan index also snapped a three-week losing streak.
Japan's Nikkei 225 bucked the trend and ended lower — its biggest fall in seven
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