Hang Seng Drops, What's Wrong with Delayed US Data?
Hong Kong's stock market was under pressure again at the start of the week as investors remained cautious ahead of the release of US September non-farm payrolls (NFP) data on Thursday—the first significant data since the 43-day government shutdown. Uncertainty about the Federal Reserve's interest rate direction dampened risk appetite. The Hang Seng Index fell 0.7%, extending its 1.9% decline from Friday, while Hang Seng Tech fell 0.6%.
The biggest pressure came from technology and travel stocks, including Trip.com, which fell 3.9%, Baidu, which fell 2.1%, and WuXi AppTec, which fell 2.7%. However, some of the decline was offset by a surge in Pop Mart International, which rose 1.3% after reports that Sony Pictures would produce a film based on the character Labubu. Meituan shares also rose 1%, and Chinese chipmaker SMIC gained 1.5%.
Market participants are now awaiting the release of the Nonfarm Payrolls (NFP), which was delayed due to the prolonged shutdown, clouding the US economic picture for more than six weeks. Several Fed officials have signaled that interest rates are unlikely to be cut in December, due to persistent inflation risks and a lack of recent data to assess the strength of the labor market.
Elsewhere in the Asia-Pacific region, Japan's Nikkei and Australia's ASX 200 fell 0.3%, while South Korea's Kospi rose 1.6%. These mixed movements indicate that Asian markets are also bracing for the impact of the US economic data release, which will significantly influence the direction of global sentiment this week. (az)
Source: Newsmaker.id
