Asia-Pacific markets opened with mixed results on Monday as investors eagerly awaited key economic data from both the U.S. and China later in the week. The results of the parliamentary elections in France signaled a hung parliament, with the left-wing New Popular Front coalition emerging as the largest party but falling short of an absolute majority.
Investors are keeping a close eye on the upcoming U.S. consumer price index reading scheduled for Thursday to gauge the Federal Reserve’s interest rate plans. Additionally, China’s inflation figures on Wednesday will provide insights into the country’s economic recovery. This week will also see central bank decisions from South Korea, New Zealand, and Malaysia, with no significant changes expected according to a Reuters poll of economists.
Japan’s Nikkei 225 saw marginal decreases while the Topix index was down by 0.36%. Real wages in Japan fell for the 26th consecutive month, with a 1.4% year-on-year decrease in May. Despite this, nominal wages rose by 1.9% to 297,151 yen, marking the fastest wage increase in 11 months.
South Korea’s Kospi was trading close to the flatline, with the small-cap Kosdaq climbing by 0.86%. Samsung Electronics’ shares saw an increase of 0.46% despite the impending three-day strike by the National Samsung Electronics Union (NSEU), which demanded changes to the company’s bonus system and additional annual leave for workers.
In Hong Kong, the Hang Seng index dropped by 0.46%, while the mainland Chinese CSI300 slid by 0.3%, marking its lowest level since February and heading for a fifth consecutive day of losses. Australia’s S&P/ASX 200 slipped by 0.36%, indicating a second day of losses.
On Friday, the S&P 500 and the Nasdaq Composite reached new highs in the U.S., with both indexes closing at record levels thanks to the latest jobs report. This positive news reignited hopes for potential rate cuts from the Federal Reserve. The S&P 500 rose by 0.54% to close at 5,567.19, while the Nasdaq gained 0.90% to reach 18,352.76. The Dow Jones Industrial Average also saw a 0.17% increase.
The Asia-Pacific markets are facing uncertainty and mixed results as investors await crucial economic data from key players like the U.S. and China. The outcomes of the upcoming reports and decisions from central banks will likely influence market movements in the region in the coming days.
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