Asian Stocks Fluctuate Ahead Of Likely Rate Cut In China

Stocks in the Asia-Pacific region began the week mixed after Wall Street closed with the best weekly gain this year as corporate earnings remained buoyant.

Australia's S&P ASX 200 was 50 points, or 0.6%, higher at 8,332 while the Japese Nikkei 225 was down 25 points, or 0.11%, at 38,950 as of 5:38 a.m. The equity futures in mainland China were also pointing to a positive start.

Stocks in China will be in focus on Monday as the country plans to ease key policy rates to beat disinflation and revive the economy. People's Bank of China's Governor Pan Gongsheng told a financial forum in Beijing on Friday that the LPR could be reduced by 20 to 25 basis points on Monday.

The benchmark in Mainland China—CSI 300—closed 3.62% higher on Friday while the Hang Seng index ended over 3.5% higher.

This comes after China's GDP increased by 4.6% in the July to September period from a year prior. This is the slowest pace since March 2023 and is down from a 4.7% expansion in the second quarter. Further, its industrial production rose 5.4% from a year earlier, versus economists’ forecast of 4.6% growth.

Stocks in the US closed last week with the best gain in 2024 amid strong corporate results and signs of optimism in economic growth. Stock benchmarks surged to record highs amid gains in most major groups with the S&P 500 notching its 47th record this year.

Tesla Inc. and Boeing Co.'s earnings will be closely watched this week as investors look for guidance after recent challenges in recent launches and production delays, respectively.

Oil remained steady as Israel vowed retaliation aginst Iran after it targeted the residence of Prime Minister Benjamin Netanyahu via a drone attack. This comes after Israel killed Hamas leader Yahya Sinwar.

Brent crude was trading 0.19% higher at $73.20 a barrel as of 6:00 a.m. IST. West Texas Intermediate was up 0.26% at $69.40.