Asian equities held firm on Monday, with South Korea’s KOSPI index hitting a record high, while China’s latest economic data came in below expectations.
China’s August industrial output rose 5.2% year-on-year, the slowest pace in a year, while retail sales grew just 3.4%, both missing forecasts. The weak figures highlighted pressure on domestic demand and production, raising expectations of further policy stimulus. Despite the soft data, Chinese markets extended gains, with the CSI 300 climbing nearly 1% and the Shanghai Composite hovering near a decade high. Hong Kong’s Hang Seng Index also edged up 0.3%.
Trade talks between Washington and Beijing began in Madrid, focusing on tariffs and export controls. Optimism grew after China launched a probe into U.S. chip trade practices, which investors see as a potential boost to domestic semiconductor players.
South Korea’s market surged to new highs, led by SK Hynix and Samsung Electronics, with the KOSPI rising 0.6%. Japanese markets were closed for a holiday but remain near record territory. Elsewhere, Australia’s ASX 200 slipped 0.2%, Singapore’s STI was flat, while India’s Nifty held steady.
Investors broadly expect the Federal Reserve to cut rates by at least 25 basis points next week, as signs of cooling in the U.S. labor market strengthen the case for monetary easing.
