Asian Stocks in Tight Range Before China Data Dump
Most Asian stocks traded in narrow ranges early Monday ahead of a swath of Chinese data and following a vow from the nation’s regulators to stabilize markets.
South Korea’s shares and the won rose after President Yoon Suk Yeol was impeached on the weekend. Japanese equities edged higher while Australian stocks dropped and equity futures in China pointed to losses. US futures were little changed after the S&P 500 swung between gains and losses on Friday ahead of a possible hawkish rate cut by the Federal Reserve this week.
The lack of a clear direction in Asian markets comes as investors readied themselves for the final full week of trading this year with a series of central bank meetings including the Fed, Bank of Japan and Bank of England. Traders may begin to take profit on this year’s almost 20% rally in global stocks, which were fueled by gains in US tech shares and euphoria over AI.
Korea’s Kospi index extended a rally into a fifth day and have now erased all losses since Yoon’s short-lived attempt to impose martial law earlier this month. The Bank of Korea pledged to use “all available policy instruments” to stabilize stock and currency markets after Yoon’s impeachment on Saturday.
Chinese stocks are expected to extend a selloff sparked Friday amid disappointment after Beijing pledged to boost consumption but failed to offer details on fiscal stimulus. Regulators at the weekend vowed more efforts to stabilize the property and equity markets, including increased monitoring of futures and spot trading, ahead of economic data set to be released that includes retail sales and industrial production.
The People’s Bank of China may also keep a cap on the yuan through its daily fixing as the currency faces pressure over the prospect of US tariffs, according to Commonwealth Bank of Australia.
Source : Bloomberg
