Asia’s major stock markets saw a mostly subdued start to the week with investors keeping their powder dry ahead of a data-heavy few days, featuring key US jobs reports.
The jobs figures could decide whether a rate cut expected this month will be regular or even more significant, and that uncertainty saw many traders stay on the sidelines on Monday.
Japan’s Nikkei share average rose though, to touch the 39,000 level for the first time since late July, helped by a softer yen and Wall Street’s gains at the end of last week.
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The Nikkei closed 0.14% higher at 38,700.87. It hit its highest since July 31 at 39,080.64 earlier in the day before trade turned choppy as profit-taking started and the yen’s slide stalled. The broader Topix also finished up 0.12% at 2,715.99.
The transport equipment sector edged higher 0.7%, with Toyota Motor up 0.8%, while Honda Motor climbed 1.4% and Mazda gained 0.7%. Chip-related Advantest rallied 2.3% to give the Nikkei index the biggest lift, followed by electronic components maker TDK, which was up 2.7%.
Chinese shares fell with property developers shedding recent gains following lacklustre data on domestic home prices and as investors gauged major state-backed developer Vanke’s first net loss of more than $1 billion in the first half.
A private survey showed that China’s new home prices barely rose in August, while shares of China Vanke fell nearly 4%.
China’s blue-chip CSI300 index was down 1.70% and, earlier in the session, the consumer staples sector was down 2.5% and the food and beverage index dropped 2.7%.
The Shanghai Composite Index fell 1.10%, or 31.18 points, to 2,811.04, while the Shenzhen Composite Index on China’s second exchange slipped 1.91%, or 29.53 points, to 1,514.70.
Chinese H-shares – stocks belonging to companies from the Chinese mainland – listed in Hong Kong fell 1.8% to 6,212.19, while the Hang Seng Index was down 1.65%, or 297.10 points, at 17,691.97.
Mainland Chinese property shares fell 3.3% while Hong Kong-listed developers lost nearly 5%, as investors cashed out after a Friday rally, which was triggered by a report on fresh policy support.
Shares of New World Development, a major Hong Kong property developer, dived 14% after it estimated a net loss.
US, Canada Holiday
Elsewhere across the region, in earlier trade, Sydney, Singapore, Seoul, Mumbai, Manila, Wellington and Jakarta rose but Bangkok and Taipei fell. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.4%.
Globally, a holiday in the United States and Canada made for thin liquidity, while wins for far-right parties in German state elections added a fresh layer of political uncertainty.
The dollar clung to much of the gains made on Friday after upbeat spending figures led markets to trim the chance of a half-point easing from the Federal Reserve.
Crucial for the Fed will be the payrolls report on Friday where analysts look for a rise of 165,000 in jobs and a dip in the unemployment rate to 4.2%.
Cash Treasuries were untraded for the holidays, while Treasury futures were little moved. Ten-year yields stood at 3.914% after rising in the wake of Friday’s inflation and spending data.
That rise underpinned the US dollar at 146.08 yen, having rallied 1.2% last week, and it now faces chart resistance around 148.54.
The European Central Bank (ECB) is considered certain to cut its rates by a quarter point next week following benign EU inflation figures.
The firmer dollar combined with higher bond yields to pressure gold prices at $2,497 an ounce, short of its recent all-time top of $2,531.60.
Oil prices lost more ground as the market pondered the prospect of increased supply from OPEC+ in October. Brent fell 59 cents to $76.34 a barrel, while US crude lost 51 cents to $73.04 per barrel.
Key figures
Tokyo – Nikkei 225 > UP 0.14% at 38,700.87 (close)
Hong Kong – Hang Seng Index < DOWN 1.65% at 17,691.97 (close)
Shanghai – Composite < DOWN 1.10% at 2,811.04 (close)
London – FTSE 100 < DOWN 0.07% at 8,370.93 (0934 BST)
New York – Dow > UP 0.55% at 41,563.08 (Friday close)
- Reuters with additional editing by Sean O’Meara
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