Asia-Pacific equity market were in red on Monday, with investors anticipating key economic data from the U.S. and China later this week and France's election results indicating a hung parliament.
Japan (NKY:IND) -0.32%. Japan’s current account surplus climbed to JPY 2,849.9 billion in May 2024 from JPY 2,010.1 billion in the same month a year earlier, topping market forecasts for a gain of JPY 2,450 billion.
Average cash earnings in Japan increased by 1.9% year-on-year in May 2024, accelerating from a 1.6% gain in April.
The value of loans in Japan increased 3.2% year-on-year in June 2024, accelerating from a downwardly revised 2.9% gain in May and coming in above market expectations for a 3.1% growth.
China (SHCOMP) -0.93%. Traders were nervous as markets in China extended losses for the fourth session to hit their lowest in 4-1/2 months as provisional tariffs from the EU on China's EVs had taken effect from Friday. At the same time, the US has imposed trade curbs on two Chinese firms over links to military training.
Market participants are bracing for a busy week with the release of key economic indicators, including inflation data, trade figures, and the outstanding loan growth rate, all of which are expected to provide further insights into China's economic trajectory.
Traders are also bracing for the upcoming GDP data and the Third Plenum next week, which is expected to give more clarity on the speculated consumption tax reform in China.
Hong Kong (HSI) -1.78%. Forex reserves in Hong Kong fell to an 8-month low in June, while those in China fell after a rise in May.
India (SENSEX) -0.22%.
Australia (AS51) -0.76%. The value of new home loans for owner-occupied homes in Australia dropped by 2.0% month-on-month to A$ 18.13 billion in May 2024, missing market forecasts of a 2.0% growth.
In the U.S., on Friday, all three major indexes ended higher as traders continued to assess mixed US employment data from last week, which put downward pressure on Treasury yields and increased speculation about a potential rate cut in September.
In Europe, traders are monitoring political developments after France's left-wing New Popular Front coalition unexpectedly blocked a far-right advance on Sunday but failed to win a majority.
U.S. stock futures slipped on Monday as investors geared up for key inflation data and earnings from major companies this week: Dow -0.21%; S&P 500 -0.15%; Nasdaq -0.13%.
Investors are awaiting Fed Chair Jerome Powell’s testimony and comments from other Fed officials later this week, as well as the crucial US inflation report, for more cues on the US interest rate path.
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