Asian Stocks Trade Cautious As China's Weak Data Dampen Sentiment
All eyes are on the US Federal Reserve as the long-awaited interest rate cuts might soon be a reality this week.
Most stocks in the Asia-Pacific region declined on Monday as data over the weekend pointed out that China's economy weakened further. Stock markets in Japan, mainland China and South Korea will be closed for a public holiday.
Australia's S&P ASX 200 was up 0.4% at 8,132 while Hang Seng was down 0.35% at 17,309 as of 7:41 a.m. The US equity futures were mixed in early trading.
Sentiment in the region was also affected following the second assassination attempt on US presidential candidate Donald Trump. He was later taken to safety.
Former President Trump was taken to safety following gunshots at his golf course in West Palm Beach, Florida on Sunday. His Secret Service opened fire at a man who was wielding an assault rifle, according to Bloomberg. The Federal Bureau of Investigation called it an apparent assassination attempt.
The suspect in the apparent assassination attempt of former President is 58-year-old Ryan Routh, Bloomberg reported quoting federal officials.
Meanwhile, China’s economy weakened with factory output, consumption and investment all slowing more than expected in August. The South Asian country's home prices fell to the fasted pace since 2014.
The People’s Bank of China indicated more monetary easing ahead and signaled that fighting deflation would become a higher priority.
All eyes are on the US Federal Reserve as the long-awaited interest rate cuts might soon be a reality this week. Fed funds futures traders on Sunday priced in a 50% probability of a 50 basis-point cut, up from 47% on Friday. They saw a 50% probability of a 25 basis-point cut, according to the CME FedWatch Tool.
The broader markets outperformed the benchmark gauges as the Russell 2000 climbed 2.5% on Friday.
The S&P 500 and Nasdaq Composite rose 0.54% and 0.65%, respectively. The Dow Jones Industrial Average advanced 0.72%.
Brent crude was trading 0.24% higher at $71.78 a barrel as of 7:42 a.m. IST. West Texas Intermediate was up 0.39% at 68.92.
Key Levels
US Dollar Index at 100.98.
US 10-year bond yield at 3.65%.
Brent crude up 0.24% at $71.78 per barrel.
Bitcoin was down 2.28% at $58,444.34.
Gold was up 0.19% at $2,582.7 an ounce.
