As Asia-Pacific markets opened mixed on Monday, investors remained cautious as they awaited key economic data from the U.S. and China later in the week. The election results in France, which signaled a hung parliament, added to the uncertainty in the global markets. France’s left-wing New Popular Front coalition managed to secure the largest number of seats but fell short of an absolute majority in a parliamentary run-off vote.
Investors are closely monitoring the U.S. consumer price index reading, due on Thursday, to gauge the Federal Reserve’s interest rate path. In addition, China’s inflation figures, expected on Wednesday, will provide insights into the state of the country’s economic recovery. Central bank decisions from South Korea, New Zealand, and Malaysia are also on the agenda for the week, although economists do not anticipate any major changes.
The Nikkei 225 in Japan experienced marginal losses, while the broader Topix index was 0.36% lower. Real wages in Japan have been declining for 26 consecutive months, with a 1.4% year-on-year drop in May. However, nominal wages saw a 1.9% increase, reaching 297,151 yen ($1,850), marking the fastest wage growth in 11 months.
South Korea’s Kospi was trading close to the flatline, with the small-cap Kosdaq climbing 0.86%. Despite facing a three-day strike from the National Samsung Electronics Union (NSEU), Samsung Electronics’ shares gained 0.46%. The union, comprising about 28,000 members, is demanding improvements to the company’s bonus system and additional annual leave for workers.
On the other hand, Hong Kong’s Hang Seng index dropped 0.46%, and the mainland Chinese CSI300 slid 0.3%, continuing a five-day losing streak and hitting its lowest level since February. Australia’s S&P/ASX 200 also slipped 0.36%, marking a second consecutive day of losses.
Global Market Trends
In the U.S., the S&P 500 and the Nasdaq Composite reached new highs on Friday, with both indexes closing at record levels. The latest jobs report reignited hopes for rate cuts by the Federal Reserve, leading to a 0.54% increase in the S&P 500 and a 0.90% gain in the Nasdaq Composite. The Dow Jones Industrial Average also added 0.17% amid the positive market sentiment.
Overall, global markets are reacting to a mix of economic data and political developments, with investors closely monitoring upcoming reports and central bank decisions to gain a clearer picture of the financial landscape.
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