BackAsian markets mixed as China’s factory activity expands, US govt shutdown averts; dollar gains
Chinese markets are closed for the Golden Week holiday. Stock markets in South Korea and Hong Kong are also shut for holidays.
PremiumAsian markets traded mixed on Monday as investors looked out to the economic data from China and Japan, while positive sentiment prevailed due to the avoidance of a US government shutdown.
The legislators in the US were able to reach a temporary agreement that averted a government shutdown. The US House has passed a stopgap funding bill to fund the government for the next 45 days, averting the shutdown. The Senate also passed a last-minute spending bill on Saturday night, and then it was signed by President Joe Biden.
Read here: US Congress passes bill to fund govt for 45 days, averts shutdown
Japan’s Nikkei 225 gained 0.68%, while the Topix rose 0.45%.
Chinese markets are closed for the Golden Week holiday. Stock markets in South Korea and Hong Kong are also shut for holidays.
In Australia, the S&P/ASX 200 fell 0.23%.
Meanwhile, the Indian stock market is also closed today on account of Mahatma Gandhi Jayanti holiday.
Read here: Stock market holiday: BSE, NSE to remain closed today for Mahatma Gandhi Jayanti
Wall Street
The US stock market indices ended mostly lower on Friday as investors digested implications of a US inflation report for the Federal Reserve’s interest rate policy.
The Dow Jones Industrial Average fell 158.84 points, or 0.47%, to 33,507.5, while the S&P 500 declined 11.65 points, or 0.27%, to 4,288.05. The Nasdaq Composite ended 18.05 points, or 0.14%, higher at 13,219.32.
Read here: Global market update: Wall Street indices erase gains as investors wary of US shutdown
The S&P 500 and Nasdaq posted their biggest monthly percentage drops of the year, while all three major indexes had their first quarterly declines in 2023.
Data showed the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 3.9% on an annual basis for August, the first time in over two years it had fallen below 4%, Reuters reported.
Also Read: Wall Street week ahead: Investors to focus on OPEC+ meet
Japan’s factory output
Japan's factory activity fell at the fastest pace in seven months in September, a survey showed on Monday. The final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) fell to 48.5 in September from 49.6 in August and roughly in line with the flash reading of 48.6, Reuters reported.
The index has remained below the 50.0 point threshold that separates growth from contraction for four straight months.
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China manufacturing PMI
China's factory activity expanded at a slower pace in September as sluggish external demand weighed on the outlook even as output increased.
The Caixin/S&P Global manufacturing purchasing managers' index (PMI) fell to 50.6 in September from 51.0 in the previous month, missing analysts' forecasts of 51.2, Reuters reported.
Currency Market
The US dollar traded higher on Monday supported by the prospect of higher-for-longer US interest rates.
The US dollar index stood not too far from its recent 10-month high and was last at 106.24, after clocking its best quarterly performance in a year last month amid persistently hawkish US Federal Reserve rhetoric.
The Japanese yen slid to a roughly 11-month low of 149.74 per dollar. The euro lost 0.07% to $1.0565. Sterling was last 0.13% lower at $1.2188.
The Australian dollar fell 0.07% to $0.64305, while the kiwi edged 0.1% lower to $0.59925, Reuters reported.
Energy
Crude oil prices rose on Monday amid tight global supply outlook and improved sentiment over a last-minute avoidance of a US government shutdown.
Brent December crude futures rose 18 cents, or 0.2%, to $92.38 a barrel, while US West Texas Intermediate crude futures gained 23 cents, or 0.3%, to $91.02 a barrel.
(With inputs from Reuters)
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