Japan (NKY:IND) +0.92%. Looking ahead to Japanese inflation figures for December due later this week to guide the monetary policy outlook.

China (SHCOMP) +0.29%. People’s Bank of China set MLF rate at 2.5% (prior 2.5%).

Chinese Outlook: Data and Geopolitical Developments

In the following days, Chinese officials are set to release crucial data, including the Q4 GDP growth rate as well as figures on industrial output and retail trade.

Meanwhile, markets monitored geopolitical developments in the region after Lai Ching-te, considered a strong China skeptic, helped secure a third-straight victory for the ruling Democratic Progressive Party in Taiwan’s presidential election over the weekend.

Market Movement: Hong Kong, India, and Australia

Hong Kong (HSI) -0.12%.

India (SENSEX) +0.80%.

Australia (AS51) -0.03%. Household spending in Australia, December, -3.1% m/m (prior +1.8%).

Australian private survey of inflation soared by 1% m/m in December, the most in 17 months.

Insights: Rising Australian Inflation

The Melbourne Institute’s Monthly Inflation Gauge showed prices in Australia sharply accelerated to 1.0% in December 2023 from a 0.3% rise in the previous month

Global Market Impact and Political Tensions

In the U.S. on Friday, all three major indexes ended mixed after four big banks posted downbeat earnings results.

A holiday in the US Monday made traders reluctant to enter new positions as some of them continued to digest the first batch of earnings results on Wall Street and the Fed’s interest rate plans for the months ahead.

Late last week, US and British forces carried out strikes on Houthi targets in Yemen to stop them from attacking ships in the Red Sea, while the Houthi militia threatened a “strong and effective response” against the US on Sunday.

Currency Market Status

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

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