Asia’s stock markets mostly failed to show signs of steadiness as investors awaited key economic data that could influence the United States Federal Reserve’s decision on interest rate cuts.
At 00:30 EST (04:30 GMT), Japan’s Nikkei index fell 0.1% to 38,634.50, while China’s Shanghai Composite Index was down 0.52% to 2,796.48. Hang Seng index dropped similarly, exchanging hands at 17,601.00, or -0.51% on the day.
The negative market sentiment follows a set of positive spending figures released on Friday, which led to a reduced likelihood of a significant half-point rate cut by the Fed. The upcoming U.S. ISM manufacturing survey and the highly anticipated jobs data set for release on Friday are expected to play a pivotal role in the Fed’s rate decision-making process.
On the other hand, investor concerns surrounding China are continuing to increase.
“The economy was under double whammy of weather shocks and weak demand in August. We expect deteriorating activities yet better CPI on food reflation. The “around 5%” growth target could be at risk,” Citigroup economists wrote in a note Tuesday.
“Even with acceleration in government bond issuance, we doubt how effective the proceeds could be deployed for investment before the grip on debt management is loosened.”
Sanergy Group collapsed 99% Tuesday after Hong Kong’s Securities and Futures Commission told investors to avoid trading the stock given its high concentration in shareholding.
On the other hand, Reuters reported that Tesla plans to produce a six-seat variant of its Model Y car in China from late 2025.
