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Asian markets dip on Chinese inflation data, European stocks up in premarket on economic optimism

Published 13/05/2024, 07:26
Asian markets dip on Chinese inflation data, European stocks up in premarket on economic optimism

Stock exchanges across the Asia Pacific region saw mostly lower trading on Monday, influenced by fresh data out of China. The latest inflation figures showed a rise to 0.3% in April year-over-year, which led to a downturn in Chinese stocks.

The Shanghai Composite fell by 0.9%, while the Shenzhen Composite dropped by 0.69%. In contrast, Hong Kong’s Hang Seng index bucked the trend, climbing 0.42% at the same time.

Elsewhere in the region, South Korea’s Kospi declined by 0.41%, Japan’s Nikkei 225 decreased by 0.32%, and the Australian S&P/ASX 200 dipped slightly by 0.18%.

These movements reflect investor caution as they digest the implications of China’s inflation dynamics on regional economies.

Stability in currency markets

Currency markets saw little change with the dollar remaining flat against the Japanese yen, trading at ¥155.8290 as of 7:18 am CET. This stability indicates a holding pattern as traders await further economic cues.

European equities look up ahead of key economic reports

In Europe, stock markets traded higher in the premarket sessions, driven by anticipation ahead of several key economic reports due Tuesday.

Investors are particularly focused on upcoming data concerning Germany’s inflation rates, the unemployment rate in the United Kingdom, and economic sentiment across the Eurozone.

Specifically, Germany’s DAX ticked up by 0.09%, the UK’s FTSE 100 increased by the same margin, France’s CAC 40 advanced by 0.15%, and the Eurostoxx 50 saw a gain of 0.14%.

These modest upticks reflect a cautiously optimistic outlook from investors hoping for positive news that could signal sustained economic recovery in the region.

Currency stability continues in Europe

The euro and the British pound remained steady against the U.S. dollar, selling for $1.07728 and $1.25279, respectively, as of 7:58 am CET.

This stability in the currency markets underscores the wait-and-see approach adopted by investors as they prepare for a potentially news-heavy Tuesday.

Overall, global financial markets are displaying a mixed pattern of cautious decline in Asia due to inflation concerns, coupled with modest gains in Europe driven by hopeful anticipation of favorable economic data.

This article first appeared on Invezz.com

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