Investing.com-- Most Asian stocks retreated on Monday following disappointing economic growth figures from China, while uncertainty over U.S. politics, following an assassination attempt on former President Donald Trump, also dented sentiment.
Markets were grappling with low trading volumes on account of a Japanese market holiday.
But losses in most Asian markets were limited by a positive lead-in from Wall Street on Friday, as U.S. stock indexes came close to record highs amid growing optimism over interest rate cuts.
Wall Street futures were mildly positive in Asian trade, amid speculation over what an attempt on Trump’s life meant for the 2024 presidential race. Trump is now set to appear at the 2024 Republican convention this week, where he is likely to be officially named as the party’s presidential nominee.
Chinese markets flat, Hong Kong slides on weak GDP
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes were flat in choppy trade, while losses in mainland stocks saw Hong Kong’s Hang Seng index slide 1.1%.
China’s gross domestic product grew less than expected at 4.7% year-on-year in the second quarter, hampered chiefly by weak consumer spending and demand. This trend largely offset improvements in industrial production and manufacturing activity.
Underwhelming retail sales data for June furthered this notion, as concerns over slowing economic growth, high unemployment and a property market slump all saw Chinese consumers pull back further on spending.
Focus is now squarely on the Third Plenum of the Chinese Communist Party, set to begin later on Monday. The event is a meeting of top Chinese officials and will be closely watched for more signals on stimulus.
Concerns over China weighed on sentiment towards Asia. South Korea’s KOSPI fell 0.1%.
Futures for India’s Nifty 50 index pointed to a mildly positive open, as the index continued to notch new peaks on optimism over Indian economic growth.
Australia’s ASX 200 outperforms, races to record highs
Australia’s ASX 200 was a major outperformer in Asia for the day, surging 0.8% to a record high of 8,037.30 points.
Gains were driven chiefly by heavyweight banks and mining stocks, with the latter, including BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO), set to report their quarterly production figures later this week.
While Australian economic signals have underwhelmed, local stocks have benefited from investors pivoting into more economically-sensitive sectors, on the prospect of lower interest rates in the coming months. This trend was observed across broader global markets.
Australia’s relatively lower tech weightage in equity markets also made the country appear more attractive, as investors pivoted out of tech after hype over artificial intelligence caused a massive valuation spike in the sector.