Asia’s stock markets saw little movement on Monday despite a record-smashing lead from Wall Street, with traders eyes on a raft of major monetary policy announcements due this week.
Friday’s gains on Wall Street, where the S&P 500 added more than 0.9% to finish at 4,712.02, eclipsed a record from last month – and came despite figures showing the consumer price index had jumped 6.8% in November.
The rise in inflation suggests a tapering in the US Federal Reserve’s ultra-loose monetary policy will come sooner rather than later – a change that markets have been nervously awaiting for months.
Fed chair Jerome Powell, who will update the markets this week following a two-day policy meeting, had already signalled plans to accelerate the tapering of stimulus payments. Many analysts expect the central bank to hike interest rates at least twice in 2022.
But traders took the data in their stride, in part because the inflation was largely expected.
Also on AF: New China Import Rules A Pain for Foreign Food, Drink Firms
In Asia Hong Kong’s Hang Seng Index edged down at the close, while Tokyo’s benchmark Nikkei 225 index crept up. Singapore, Seoul and Taipei were marginally down, with Manila, Jakarta and Shanghai slightly up. Wellington rose more than 1%.
The Hang Seng Index was down 0.17%, or 41.14 points, to 23,954.58. The Shanghai Composite Index was up 0.40%, or 14.73 points, to 3,681.08, while the Shenzhen Composite Index on China’s second exchange gained by 0.60%, or 15.26 points, to 2,561.91.
The benchmark Nikkei 225 index advanced 0.71%, or 202.72 points, to end at 28,640.49, while the broader Topix index added 0.13%, or 2.65 points, to 1,978.13.
Some investors may take a wait-and-see attitude ahead of the Fed meeting, analysts added.
“Global equities had a solid run last week and we’ll see if the goodwill lasts into what is a behemoth when it comes to event risk,” Chris Weston, head of research with Pepperstone Financial, wrote in a note.
Omicron Variant Fears
The Fed, along with the latest on the Omicron variant of the coronavirus, should dictate sentiment, he added.
At the open in Europe, the main markets were largely steady. London’s benchmark FTSE 100 index opened flat at 7,292.85 points, while Frankfurt’s DAX index gained 0.2% and the Paris CAC 40 was almost unchanged at 6,992.14.
Elsewhere, Chinese artificial intelligence start-up SenseTime said it was postponing a planned $767 million initial public offering in Hong Kong after it was blacklisted by the United States over human rights concerns in Xinjiang.
It filed a statement with the Hong Kong stock exchange saying it would postpone its listing “to safeguard the interests of the potential investors” as they weigh the impact of being placed on the blacklist.
Key figures
Tokyo > Nikkei 225: UP 0.71% at 28,640.49 (close)
Hong Kong > Hang Seng Index: DOWN 0.17% at 23,954.58 (close)
Shanghai > Composite: DOWN 0.40% at 3,681.08 (close)
New York > Dow: UP 0.6% at 35,970.99 (close)
- AFP with additional editing by Sean O’Meara
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SenseTime Suspends $767m Hong Kong IPO After US Ban
Japan Service Sector Mood Improves But Omicron Clouds Outlook
