Japan’s Markets Show Resilience

Amidst the tumultuous events, Japan’s Nikkei 225 index displayed remarkable fortitude, edging up by 0.11%. The country also recorded its lowest unemployment rate since January 2023, with only 2.4% in December.

China Bears the Brunt

The story was visibly different in China, as the Shanghai Composite Index plummeted by 1.82%. Concurrently, China’s 10-year government bond yield plummeted to levels not witnessed in over two decades, dipping below 2.5%. The market sentiment was driven by expectations of further policy easing by China to bolster its flagging economy.

Hong Kong’s Tumultuous Day

The tremors were equally pronounced in Hong Kong, with the Hang Seng Index witnessing a sharp decline of 2.38% subsequent to Monday’s court-ordered liquidation of the industry behemoth, China Evergrande.

Subdued Performance Elsewhere

India’s benchmark BSE Sensex 30 also weathered losses, slumping by 0.32%, while Australia’s ASX 200 managed to stay afloat, posting a modest gain of 0.29%.

Global Economic Indicators and U.S. Market Sentiments

Amidst the Asian market turbulence, the Netherlands exhibited positive signs as business confidence surged to -4.4 in January 2024. Meanwhile, the U.S. stock market ended on a record high on Monday, as the Treasury department slashed its quarterly borrowing estimate.

Anticipated Fed Committee Meeting

The upcoming pivotal event for investors is the Federal Reserve’s monetary policy committee meeting, set to commence on Tuesday and conclude on Wednesday.

Impact on Currencies

Markets are also closely monitoring currency exchange rates, including (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), and (NZD:USD).