Precise Investors Editorial Team
Tech-heavy Asian bourses were the worst performers on Monday, with South Korea’s KOSPI down 1.4%, while Nikkei 225 and Hang Seng slipped 1.2% and 0.8%, respectively
Most Asian stocks dropped on Monday, pressured by deep losses in technology shares.
Chinese shares declined relatively less than their peers. But a swathe of weak economic readings, along with persistent concerns over a real estate meltdown, kept investors largely cautious towards mainland and Hong Kong markets.
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined nearly 0.1% each, losing relatively less than their peers on less exposure to the global AI trade.
But mainland markets were still pressured by concerns over slowing economic growth, especially following a host of weak readings for November.
Chinese industrial production and retail sales grew less than expected in October, while fixed asset investment– a key gauge of business spending– dipped at an outsized pace.
The prints raised more doubts over slowing growth in the world’s second-largest economy, and likely put more pressure on Beijing to dole out economic stimulus.
Concerns over a debt crisis in China’s property market also remained in play, especially after state-backed developer China Vanke Co Ltd failed to win debtholder approval to delay payments on an onshore bond maturing on December 15.
Vanke slipped 2.4% in Shenzhen trade, while other real estate stocks also dropped.
ING analysts said that prolonged weakness in the Chinese economy, amid a storm of headwinds, made the case for more stimulus measures from Beijing.
Tech-heavy Asian bourses were the worst performers on Monday, with South Korea’s KOSPI down 1.4%, while Nikkei 225 and Hang Seng slipped 1.2% and 0.8%, respectively.
Broader Asian bourses largely retreated, although there were some pockets of strength. TOPIX index, which has a relatively smaller weightage of tech shares, gained 0.2% after a survey showed capital spending among major manufacturers remained strong. Focus this week is also on a Bank of Japan meeting.
ASX 200 dropped 0.7%. Straits Times index shed 0.3%, while Nifty 50 index declined 0.2%.
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