Markets in the Asia-Pacific region reversed early gains on Monday, with investors closely monitoring key economic data from China and awaiting major central bank decisions later this week, CNBC reports.
The focus is on the Bank of Japan (BOJ) and the People’s Bank of China (PBOC), both of which are expected to announce important monetary policies.
In the US, the Federal Reserve’s decision, scheduled for December 18, is also creating anticipation, with the CME Fedwatch tool predicting a 96% likelihood of a 25-basis-point interest rate cut.
The Bank of Japan’s rate decision is anticipated on Thursday, with most analysts expecting the BOJ to maintain its current policy. Meanwhile, the PBOC will reveal its loan prime rates (LPR) on Friday, which are crucial for corporate and household borrowing in China. The one-year LPR impacts corporate loans, while the five-year LPR is a benchmark for mortgage rates.
Traders are also reacting to China’s latest economic data, which includes figures for industrial production, retail sales, and housing prices. In particular, retail sales growth in November missed expectations, increasing by just 3% year-on-year compared to the forecasted 4.6%. However, industrial production rose by 5.4%, surpassing analyst predictions.
Across the region, the Hong Kong Hang Seng index led the losses, falling by 1% in the final hour of trading. Mainland China’s CSI 300 also dropped by 0.54%, closing at 3,911.84. South Korea’s Kospi index ended 0.22% lower after early gains, while the small-cap Kosdaq index increased by 0.67%, marking its fifth consecutive day of gains.
Japan’s Nikkei 225 closed marginally lower, while the broader Topix index saw a slightly larger decline of 0.3%. In Australia, the S&P/ASX 200 dropped 0.56%, continuing a five-day losing streak.
