Employees lower the Chinese national flag in front of screens showing the index and share prices in front of Exchange Square in Hong Kong, China August 18, 2023. REUTERS/Tyrone Siu/File Photo Buy License Rights
4 September (Reuters) – A look at the day ahead in Asian markets by financial markets journalist Stephen Culp.
Asian markets have a difficult task to face on Monday – their own.
Asian equities ended a mixed August with robust weekly gains on Friday.
The Shanghai SE Composite (.SSEC), blue-chip Shenzhen (.CSI300), the Hang Seng (.HSI) and the broader MSCI Asia Pacific Index (.MIAP00000PUS) all posted their biggest weekly percentage gains in five years, during the ( .N225) posted the largest weekly gain since June.
The renewed risk appetite was fueled primarily by a series of measures by Beijing to shore up the economy, boost sluggish Chinese demand and contain a growing housing crisis.
“We’ve clearly seen a significant slowdown in the Chinese economy over the past few months,” said Ryan Detrick, chief market strategist at Carson Group in Omaha. “The government is pulling some levers to get the economy moving again, but it needs to do more, and its consumers need to show more confidence than they are showing right now.”
China will start the week by assessing the human and economic damage caused by Typhoon Saola, which swept through Guangdong province on Saturday, devastating Shenzhen, Hong Kong and Macau.
This happened even as Typhoon Haikui slammed into southeastern Taiwan, causing the evacuation of thousands of people.
According to the Beijing Foreign Ministry, Chinese Premier Li Qiang is due to attend a summit of the Association of Southeast Asian Nations (ASEAN) next week.
As for the economy, South Korea’s CPI is expected to rise on Tuesday, China and India are expected to release service sector PMI reports and China’s trade balance is expected on Wednesday.
Japan is due to release revised second quarter GDP data on Thursday and China’s CPI and PPI reports are due out on Friday.
Asian stock index performance
Here are key developments that could give markets more direction on Monday:
– Consumer Price Index South Korea (August)
– Australia Judo Bank Services PMI (August)
– Japanese Household Expenditures (July)
Reporting by Stephen Culp; Edited by Diane Craft
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