Most Asian stocks fell on Monday after disappointing economic growth figures from China, while uncertainty over US policy following the assassination attempt on former President Donald Trump also weighed on sentiment.
Markets faced low trading volumes due to the Japanese market holiday.
But losses in most Asian markets were limited by a positive lead from Wall Street on Friday, with U.S. stock indexes nearing record highs amid growing optimism about interest rate cuts.
Wall Street futures were moderately positive in Asian trading, amid speculation about what the assassination attempt on Trump could mean for the 2024 presidential election. Trump is now scheduled to appear at the 2024 Republican Party convention this week, where he is likely to be formally named as the party’s presidential nominee.
China markets steady, Hong Kong retreats on weak GDP
Chinese stocks were steady in volatile trading, while mainland shares suffered losses that pushed Hong Kong’s index down 1.1%.
China’s economy grew at a weaker-than-expected 4.7% year-on-year in the second quarter, as consumer spending and demand weakened. The trend was largely offset by improvements in industrial production and manufacturing activity.
Disappointing June data reinforced this notion, as concerns about slowing economic growth, rising unemployment and a slumping property market led Chinese consumers to hold back further on spending.
Attention now turns to the Third Plenary Session of the Chinese Communist Party, which is scheduled to begin later on Monday. The event is a meeting of top Chinese officials and will be closely watched for further signals on stimulus.
Concerns over China weighed on sentiment towards Asia, with South Korea’s index down 0.1%.
India index futures pointed to a somewhat positive opening as the index continued to hit fresh highs amid optimism over India’s economic growth.
Australia’s ASX 200 outperforms others, hits record highs
The Australian share index outperformed in Asia on the day, rising 0.8% to a record high of 8,037.30 points.
The gains were mainly driven by heavyweight banks and mining stocks, with the latter, including BHP Group Ltd (ASX:) and Rio Tinto Ltd (ASX:), set to report their quarterly production figures later this week.
Although Australian economic signals have been disappointing, local stocks have benefited from investors shifting to more economically sensitive sectors, amid the prospect of lower interest rates in the coming months. This trend has been seen across broader global markets.
The relatively low weight of the technology sector in Australia’s stock markets has also made the country look more attractive, as investors have moved away from technology after the hype around artificial intelligence caused the sector’s valuation to skyrocket.