Workers wave the Chinese national flag in front of screens showing index and stock prices outside Exchange Square on August 18, 2023 in Hong Kong, China. Reuters/Tyrone Siu/File Photo Obtain Licensing Rights
Sep 4 (Reuters) – A look at the day ahead in Asian markets from financial markets reporter Stephen Culp.
Asian markets will have a tough task to follow on Monday – their own.
On Friday, Asian stocks ended a mixed August with strong weekly gains.
The Shanghai SE Composite (.SSEC), blue-chip Shenzhen (.CSI300), Hang Seng (.HSI) and the broader MSCI Asia Pacific Index (.MIAP00000PUS) all enjoyed their biggest weekly percentage gains among the five, while (. N225) posted its biggest week-on-week gain since June.
The renewed risk-taking has been fueled largely by a series of actions by Beijing to prop up the economy, spur sluggish Chinese demand and stem a looming real estate crisis.
“Clearly, we’ve seen a significant slowdown in the Chinese economy over the past few months,” said Ryan Detrick, chief market strategist at The Carson Group in Omaha. “The government is making some efforts to get the economy back on track, but they need to do more, and show more confidence in their consumers than they are currently showing.”
China will assess the human and economic damage caused earlier this week in the wake of Typhoon Saola, which made landfall in Guangdong province on Saturday, devastating Shenzhen, Hong Kong and Macau.
This happened when Typhoon Haikui hit southeastern Taiwan, forcing thousands of people to flee.
In the coming week, Chinese Premier Li Keqiang is scheduled to attend the Association of Southeast Asian Nations (ASEAN) summit, according to Beijing’s foreign ministry.
On the economic front, South Korea’s CPI is expected to warm on Tuesday, China and India Post Services PMI reports and China trade balance is expected to increase on Wednesday.
On Thursday, Japan is due to release revised second-quarter GDP data and CPI and PPI reports from China are on deck for Friday.
asian stock index performance
Here are the key developments that could provide more direction to the market on Monday:
– South Korea CPI (August)
– Australia Judo Bank Services PMI (Aug)
– Japan Household Spending (July)
Reporting by Stephen Culp; Editing by Diane Craft
Our Standards: The Thomson Reuters Trust Principles.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which is committed to integrity, independence and freedom from bias under the Trust Principles.
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