TOKYO (AP) – On Monday, Asian shares experienced an overall increase, following Wall Street's strong performance the previous week, where indices approached record levels.
In terms of market statistics, Hong Kong’s Hang Seng index increased by 0.4%, reaching 26,505.18 points. Meanwhile, the Shanghai Composite index saw a modest rise of 0.2%, totaling 3,878.57 points. However, concerns regarding the Chinese economy are prevalent, as analysts express that the data from August does not adequately represent sustained growth momentum, particularly in light of the economic repercussions triggered by U.S. President Donald Trump's tariff initiatives. Notably, China's retail sales recorded a 3.4% increase, and factory output grew by 5.2% during the same period.
"The underlying flow is shifting. For years, Beijing relied on exports as the main engine of growth, even when the property sector was facing difficulties. However, with tariffs being imposed by Trump affecting supply chains, that crucial aspect of the economy is now compromised," stated Stephen Innes, managing partner at SPI Asset Management.
In Australia, the S&P/ASX 200 index fell by 0.3%, closing at 8,836.50 points. Conversely, South Korea's Kospi index rose by 0.4% to reach 3,409.94 points. It's worth noting that trading in Japan was suspended on Monday due to a national holiday.
On Wall Street, the trading session concluded on Friday with the S&P 500 slightly dipping less than 0.1% from its all-time high recorded the day before. The Dow Jones Industrial Average experienced a larger decline, dropping 273 points or 0.6%. In contrast, the Nasdaq composite registered a gain of 0.4%.
The recent market rallies have been largely fueled by expectations surrounding the Federal Reserve's impending interest rate decision. The central bank is anticipated to reduce its primary interest rate for the first time this year during its upcoming meeting. Should this anticipated rate cut fail to materialize, there is potential for a market backlash, resulting in a decline.
Overall, the S&P 500 closed down by 3.18 points, finishing at 6,584.29. The Dow Jones Industrial Average dropped by 273.78 points to close at 45,834.22, while the Nasdaq composite rose by 98.03 points to end the day at 22,141.10.
In the bond market, yields on 10-year Treasuries saw a slight recovery, rising to 4.06% on Friday from 4.01% on the previous day. In the realm of energy trading, the price of benchmark U.S. crude experienced an increase of 42 cents, settling at $63.11 a barrel, while Brent crude, recognized as the international standard, climbed by 41 cents to reach $67.40 per barrel.
In currency markets, the U.S. dollar dipped slightly to 147.45 Japanese yen, down from 147.65 yen, while the euro remained relatively unchanged, priced at $1.1730 compared to $1.1732 earlier.
