Monday 27th January 2025: Asian Markets Mixed as Investors Assess China’s Economic Data

Global Markets:
- Asian Stock Markets : Nikkei down 1.01%, Shanghai Composite up 0.12%, Hang Seng up 0.84% ASX up 0.36%
- Commodities : Gold at $2786.35 (-0.76%), Silver at $30.65 (-1.48%), Brent Oil at $76.39 (-0.89%), WTI Oil at $74.04 (-0.83%)
- Rates : US 10-year yield at 4.586, UK 10-year yield at 4.6305, Germany 10-year yield at 2.5445

News & Data:
- (USD) Flash Manufacturing PMI 50.1 vs 49.8 expected
- (USD) Flash Services PMI 52.8 vs 56.4 expected

Markets Update:
Asian markets showed mixed movements on Monday as investors reacted to China’s manufacturing and industrial profit data. Japan’s Nikkei 225 slipped 0.14%, while the Topix gained 0.68%. Chip-related stocks in Japan saw significant declines, with Advantest plunging 8.2%, Tokyo Electron losing 4.53%, and Renesas Electronics edging down 0.19%. The drop came amid concerns over Chinese AI startup DeepSeek’s open-source large-language model, seen as a potential challenge to U.S. dominance in AI technology.

In Hong Kong, the Hang Seng Index rose 0.89% at the open, while mainland China’s CSI 300 added 0.28%. However, China’s manufacturing sector faced a setback, with the January Purchasing Managers’ Index unexpectedly contracting to 49.1, below the forecasted 50.1. Despite this, December’s industrial profits in China jumped 11% year-over-year, offering some optimism amid broader economic challenges. Markets in Australia, Taiwan, and South Korea were closed for holidays.

To support its ailing stock market, China’s Securities Regulatory Commission (CSRC) announced measures to promote index investment products, including equity and bond ETFs. These initiatives, unveiled on Sunday, build on earlier efforts urging state-owned mutual funds and insurers to increase their equity holdings. Hong Kong, meanwhile, is set to release December trade data, which could further impact regional market sentiment.

In the U.S., markets ended a strong week on a softer note. The S&P 500 fell 0.3% to 6,101.24, the Nasdaq Composite lost 0.5% to 19,954.30, and the Dow Jones Industrial Average declined 140.82 points to 44,424.25. Investor enthusiasm surrounding Donald Trump’s return to the White House drove risk assets higher, with all three major indexes posting their second straight weekly gains, signaling renewed bullish momentum.

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Publication date:

27 January 2025 - 22:36 (GMT)