Asian Stocks Waver as Investors Brace for Key Economic Data

Asian stocks showed mixed performance on Monday, with most markets trading in a flat-to-low range as investors awaited crucial economic indicators scheduled for later this week. Japan’s Nikkei 225 index retreated from record highs, while Chinese stocks remained largely flat amid concerns over potential US export restrictions and positive signals from the Chinese government.

Japan’s Nikkei Slips from Record Highs

Japan’s Nikkei 225 index experienced a 0.7% decline, leading losses in the region as investors opted to lock in recent record highs. The broader TOPIX index also fell by 0.7%. Despite the Bank of Japan’s first interest rate hike in 17 years, the prospect of further monetary policy tightening in Japan weighed on investor sentiment, particularly in light of an uptick in inflation data. Market participants await inflation figures from Japan’s capital later this week, which could influence the BOJ’s future policy decisions.

Chinese Stocks Remain Flat Amid US Concerns

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes saw minor declines of 0.1% each, following steep losses in the previous session. Growing concerns over potential US export restrictions, particularly in the technology sector, contributed to the subdued performance. Reports of Beijing instructing government organizations to reduce reliance on US technology companies like Intel and AMD, as well as sidelining Microsoft’s Windows operating system, further dampened investor sentiment. Amid fears of stricter US restrictions on Chinese tech firms, major Chinese tech stocks experienced losses, although gains in other sectors partially offset the decline.

Positive remarks from Chinese officials regarding the economy and industry provided some relief, although no clear signals on additional stimulus measures were given. In Hong Kong, the Hang Seng index rose by 0.3%, supported by gains in food delivery app Meituan after its quarterly earnings beat expectations.

Mixed Performance Across Asia

Elsewhere in Asia, South Korea’s KOSPI index fell by 0.1%, while Malaysian stocks led losses in Southeast Asia with a 0.5% decline. On the contrary, Australia’s ASX 200 index bucked the trend, rising by 0.6% on the back of strength in heavyweight mining and bank stocks. Investors are also awaiting key inflation data from Australia later this week.