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Asia stocks mixed ahead of major interest rate decisions, China's weak data drags
Ayushman Ojha
Author
Ayushman Ojha
Published 12/16/2024, 10:37 PM
Asia stocks mixed ahead of major interest rate decisions, China's weak data drags
© Reuters.
AXJO
0.88%
JP225
0.29%
IND50
-0.45%
JKSE
-0.51%
KS11
-0.98%
SETI
-0.36%
SSEC
-0.57%
TOPX
0.12%
PSI
-1.84%
CSI300
0.34%
Investing.com-- Asian stocks were mixed on Tuesday as markets awaited interest rate decisions from major central banks later this week, while weak Chinese economic readings released a day earlier eroded risk sentiment.
The U.S. Federal Reserve will meet on Wednesday to decide its key interest rates, where a 25 basis point cut is largely expected. Markets were awaiting signals on the Fed’s long-term rate trajectory from this meeting.
U.S. stock index futures fell slightly in Asian trade. The indexes closed higher overnight with gains in technology stocks.
Markets await interest rate decisions in Asia
Apart from the Fed meeting, interest rate decisions from Japan, Indonesia, Thailand, and the Philippines were also in focus this week.
Japan’s Nikkei 225 rose 0.3% and TOPIX ticked higher ahead of the Bank of Japan’s policy meeting later this week.
Reuters had reported the BOJ was likely to keep interest rates unchanged this week, in contrast to earlier expectations of a hike.
Indonesia’s Jakarta Stock Exchange Composite Index slipped 0.5%. The Bank Indonesia (BI) will decide its key interest rates on Wednesday.
A slim majority of economists in a Reuters poll expect BI to maintain its key interest rate to support the rupiah. This comes after most had anticipated a rate cut just a month ago.
Thailand’s SET Index was largely muted as the Bank of Thailand (BOT) is expected to keep its key interest rate unchanged on Wednesday following an unexpected rate cut in October. Markets are split on whether the bank will maintain the rate or reduce it further early next year.
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Philippine’s PSEi Composite index declined 1.5% ahead of the Bangko Sentral ng Pilipinas' (BSP) interest rate decision on Thursday.
The Philippine central bank is expected to reduce its key policy rate by 25 basis points for the third consecutive time, as inflation remains manageable and the economy shows signs of weakening.
China, Hong Kong stocks drop after weak econ data
China’s Shanghai Composite fell 0.5%, while the Shanghai Shenzhen CSI 300 index gained 0.4%. Hong Kong’s Hang Seng index declined 0.5%.
China’s Industrial output increased as expected, however, retail sales growth decelerated sharply in November, highlighting persistent weaknesses in consumer spending.
Moreover, home prices declined at a slightly slower pace, highlighting ongoing challenges in the real estate sector.
In other regions, Australia’s S&P/ASX 200 jumped 0.8%, while India’s Nifty 50 Futures pointed to a negative start on Tuesday.
South Korea’s KOSPI index fell 0.9% amid an ongoing political crisis in the country. South Korean President Yoon Suk Yeol was impeached in parliament on Saturday over his attempt to impose martial law in the country.
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