Kospi, Hang Seng Up Even As China's Economic Challenges Intensify
The focus during the week will shift to the US GDP print to see if the Federal Reserve was late in slashing its key rates
Asian stocks began the week on a stable note, shrugging off concerns about China's deteriorating economic outlook, which initially weighed on investor sentiment.
However, all eyes will be on the US GDP print to ascertain if the Federal Reserve was late in slashing its lending rates.
The equity benchmark in Hong Kong led the advance, while that of Australia weighed. The South Korean Kospi was up 0.25% at 2,599, while Hang Seng was up 0.71% at 18,388 as of 8:46 a.m. The stock market in Japan will be closed for a public holiday.
China's economic concerns deepened on Friday as data showed a decline in government spending and a significant rise in youth unemployment. Further, the US is said to reveal its proposed rules that would ban Chinese- and Russian-made hardware and software for vehicles, Bloomberg reported citing people aware of the development.
Friday's jobless claims, durable goods, and revised GDP data for US will be the most watched events in the week to know if the Fed was late to react.
Meanwhile, stocks on Wall Street saw volatile trade to end lower as the euphoria over the rate cut by the Central Bank faded out. The S&P 500 and Nasdaq Composite slipped 0.19% and 0.36%, respectively. The Dow Jones Industrial Average rose by 0.09%.
Crude oil was steady after a second weekly gain despite escalating tensions between Israel and Hezbollah. Brent crude was trading 0.56% higher at $74.91 a barrel as of 8:47 a.m. IST. West Texas Intermediate was up 0.66% at $71.47.
Key Levels
US Dollar Index at 100.79.
US 10-year bond yield at 3.74%.
Brent crude up 0.56% at $74.91 per barrel.
Bitcoin was down 0.06% at $63,170.23.
Gold spot was up 0.25% at $2,628.31.
