Precise Investors Editorial Team
Blue-chip Chinese stocks led gains amid choppy trades, as tech stocks extended their rally
Most Asian share markets were steady on Monday after strong gains last week, with South Korea hitting new record highs and China holding near decade peaks, even as factory output and retail sales data undershot expectations.
Blue-chip Chinese stocks led gains amid choppy trades, as tech stocks extended their rally.
China’s industrial production increased at its weakest pace in a year in August – slowing to 5.2% growth year-over-year, from July’s 5.7% and missing forecasts of the same rate.
Retail sales rose 3.4% year-on-year, below July’s 3.7% and analysts’ expectations for 3.8%.
The data suggested that momentum in the world’s second-largest economy remained fragile despite earlier signs of stabilisation.
Another month of disappointing Chinese data across the board may be creating a sense of deja vu, repeating last year’s slowdown around this same time, ING analysts said in a note.
We expect the recent softening of momentum to strengthen the case for unveiling new stimulus ahead, they added.
The Shanghai Composite index rose 0.2%, hovering just below 10-year highs, while the Shanghai Shenzhen CSI 300 climbed almost 1%, staying near an over-three-year high.
Hang Seng Index added 0.3%, staying close to a four-year high.
KOSPI gained 0.6% to a new record high of 3,420.23 points on Monday, led by semiconductor giants SK Hynix Inc and Samsung Electronics.
Investors also welcomed government signals of market reforms, including the postponement of proposed capital gains tax changes.
Japan’s markets were closed on Monday for a public holiday, but stayed near record highs.
The Nikkei 225 has been lifted by technology and industrial stocks on AI enthusiasm.
Elsewhere, S&P/ASX 200 shed 0.2%, while Straits Times Index traded flat.
Nifty 50 opened largely unchanged on Monday.
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