Asian Stocks Poised to Fall as China Woes Worsen: Markets Wrap – Finapress

(Bloomberg) — Asian stocks are poised to fall early Monday as concerns over the health of the Chinese economy grow. US equity futures were regular.

Most Read from Bloomberg

Contracts in Australia, Hong Kong and mainland China point to an early loss on the Monday open, while moves in Asia is also exacerbated by thin liquidity with Japanese markets closed for a vacation. The S&P 500 closed 0.2% lower on Friday following a quarterly options expiry.

Data late Friday showed Chinese governments have cut spending while the youth jobless rate climbed to its highest level this yr since the nation’s banks refrain from cutting lending rates. Adding to the weak sentiment, the US is alleged to be planning rules that will ban Chinese hardware and software for connected vehicles as soon as Monday.

“Things in China are going from bad to worse,” said Tony Sycamore, an analyst at IG in Sydney. “With Japanese stock markets closed for a public holiday, the PBOC disappointing the market on Friday, and US yields ratcheting higher, we’re liable to see a more downbeat tone across Asian equity markets today.”

Broadly, markets are readying for the final word quarter after the Federal Reserve began its long awaited rate cut cycle last week, lifting all of the pieces from Indonesian bonds to gold. Data this week including the Fed’s preferred measure of inflation should confirm whether the rally will extend, with a deterioration likely lifting odds of an extra 50 basis point cut.

After wavering between gains and losses in the final word minutes of Friday trading, the S&P 500 and Nasdaq 100 each closed lower with the broader benchmark fresh off its thirty ninth record high of 2024. The blue-chip Dow Jones Industrial Average closed at a modern record. Greater than 20 billion shares modified hands on US exchanges, the busiest session since January 2021.

Intel Corp. was amongst the various session’s advancers after reports of a bid by Qualcomm Inc. Shares may extend gains in US trading after Apollo Global Management Inc. was reported to provide to make an equity-like investment of as much as $5 billion throughout the chipmaker.

Gold closed above $2,600 an oz. on Friday, extending gains after an Israeli strike on a Beirut suburb. The dear metal and oil were regular in early trading as Hezbollah launched retaliatory attacks toward vast areas of Israel’s north after the pager and other electronic device explosions last week that killed a minimum of 39 people in Lebanon.

The dollar was little modified against major peers early Monday. Money trading of US Treasuries was closed in Asia due to vacation in Japan. Australian bonds fell ahead of the central bank likely extending a policy pause on Tuesday as housing costs underpin sticky inflation.

“Our Australian economics team expect the RBA’s comments to be hawkish, albeit marginally less hawkish than in August, helping guide the Australian dollar higher,” Commonwealth Bank of Australia strategists including Joseph Capurso wrote in a note to clients. “Quite a bit must go right for the RBA to cut the cash rate this yr; the danger is a delay into early 2025.”

Elsewhere this week, factory activity and consumer confidence readings in Europe are due while Australia and Tokyo are set to release inflation data. A swath of Fed speakers are due as economic data including the US personal consumption expenditures gauge and jobless claims are scheduled to be released.

Key events this week:

Malaysia CPI, Monday
Eurozone HCOB Manufacturing PMI, HCOB Services PMI, Monday
UK S&P Global Manufacturing PMI, S&P Global Services PMI, Monday
Australia rate decision, Tuesday
Japan Jibun Bank Manufacturing PMI, Services PMI, Tuesday
Mexico CPI, Tuesday
Bank of Canada Governor Tiff Macklem speaks, Tuesday
Australia CPI, Wednesday
China medium-term lending facility rate, Wednesday
Sweden rate decision, Wednesday
Switzerland rate decision, Thursday
ECB President Christine Lagarde speaks, Thursday
US jobless claims, durable goods, revised GDP, Thursday
Fed Chair Jerome Powell gives pre-recorded remarks to the tenth annual US Treasury Market Conference, Thursday
Mexico rate decision, Thursday
Japan Tokyo CPI, Friday
China industrial profits, Friday
Eurozone consumer confidence, Friday
US PCE, University of Michigan consumer sentiment, Friday