Asian markets largely closed on a positive note on Monday, despite declines in Chinese and Hong Kong stocks due to economic concerns. The dollar softened in Asian trading after hitting its highest level in nearly two weeks. Meanwhile, gold dipped below $2,500 per ounce, and oil maintained lower levels ahead of an impending OPEC+ decision on output.China’s Shanghai Composite Index dropped by 1.10% to 2,811.04 as mixed factory activity data raised new questions about efforts to stimulate the economy. An official survey indicated that factory activity hit a six-month low in August, and while a private survey showed manufacturing activity swinging back to growth, external demand deteriorated, leading to new export orders falling at their fastest pace since November 2023.Shares of China Vanke tumbled by 5% after the property developer reported its first interim loss in two decades. Hong Kong’s Hang Seng Index also fell by 1.65% to 17,691.97, with New World Development Co. shares plummeting 13% on news that the company expects its first annual loss in two decades.Japanese markets ended slightly higher despite a choppy session. Data revealed Japan’s manufacturing activity was closer to stabilization in August, and businesses increased investment in the second quarter. The Nikkei Average edged up by 0.14% to 38,700.87, while the broader Topix Index settled 0.12% higher at 2,715.99. A weaker yen benefited automakers, with Nissan Motor, Toyota, and Honda Motor rising between 0.5% and 1.4%.Seoul stocks managed modest gains as a survey showed South Korea’s factory activity growth accelerated in August. The Kospi Average inched up 0.25% to 2,681. Australian markets also closed positively after the manufacturing PMI improved in August. The S&P/ASX 200 climbed 0.22% to 8,109.90, and the broader All Ordinaries Index increased by 0.17% to 8,330.80.Banks led the gains in Australia, with Commonwealth Bank rising 1.6% after acquiring a substantial holding in Steadfast Group Ltd. ANZ, NAB, and Westpac increased between 0.9% and 1.3%, although mining giants BHP and Rio Tinto fell over 1% due to dropping metal prices. REA Group shares declined by 5.3% after the online real estate platform confirmed considering a bid for the U.K.-listed Rightmove.Across the Tasman Sea, New Zealand’s S&P/NZX-50 Index jumped 0.87% to 12,555.52.U.S. stocks rallied on Friday as fears of a recession eased, and the Personal Consumption Expenditures Index showed prices increasing in line with July expectations, prompting speculation that the Federal Reserve may shift its policy in September. The PCE index showed a monthly increase from 0.1% in June to 0.2% in July, while the annual rate held steady at 2.5%.The Dow Jones rose 0.6%, reaching a new record high, while the S&P 500 added 1%, and the tech-centric Nasdaq Composite surged 1.1%.The material has been provided by InstaForex Company – www.instaforex.com
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