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Markets React: Asia-Pacific Stocks Reflect Global Economic Uncertainties Asia-Pacific Stocks Reflect Global Economic Uncertainties

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Investors in Asia-Pacific are feeling the weight of economic uncertainty as stocks in the region mirror losses in other major markets.

Japan (NKY:IND) -0.79%. The news of Japan’s producer prices climbing by 0.3% in December barely made a dent in the overarching financial gloom.

Market watchers are bracing for the release of consumer inflation data later this week, with expectations aligning to reveal further signs of moderating price pressures.

China (SHCOMP) +0.25%. Traders are eagerly anticipating Chinese GDP figures for Q4, set to be unveiled on Wednesday, including data on December’s industrial production, retail sales, and unemployment rate.

Meanwhile, Hong Kong (HSI) -1.85%, India (SENSEX) -0.07%, and Australia (AS51) -1.09% are all grappling with their own respective market setbacks.

The dip in Australian January consumer confidence to -1.3% m/m, coupled with a fall in the weekly consumer confidence survey to 84.4, are further tribulations for the beleaguered region.

Adding to the woes, private house approvals in Australia retreated by 1.7% month-on-month to 8,506 units in November 2023.

As if mirroring this pessimism, U.S. stocks closed mixed on Friday after four major banks posted disappointing earnings results.

And as investors gear up for the trading day in the U.S., stock futures are taking a hit, with the Dow -0.36%; S&P 500 -0.35%; and Nasdaq -0.55% all set for a downbeat start.

Looking ahead, investors are now eagerly anticipating US retail sales data due on Wednesday, along with fresh remarks from Fed officials this week to better gauge the monetary policy outlook. However, they remain on edge as a European Central Bank official warned on Monday that it may be premature to cut rates this year, given ongoing inflation and geopolitical risks.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD)

Key Developments in Asia

  • Japan producer prices climb 0.3% in December

  • China Data Dump Keeps Market Looking For A Rate Cut Next Week

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