Mixed Performance in Asian Stocks as Japanese Markets Rebound, Chinese Stocks Fall

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Asian Stocks,Japanese Markets,Chinese Stocks

Asian stocks were a mixed bag on Monday as Japanese markets rebounded from sharp losses seen last week, while Chinese stocks fell amid renewed concerns over the country’s property market.

Asian stocks were a mixed bag on Monday as Japanese markets rebounded from sharp losses seen last week, while Chinese stocks fell amid renewed concerns over the country’s property market. Broader Asian markets moved in a tight range as sentiment still remained fragile in the face of waning confidence over early U.S. interest rate cuts. U.S. stock futures rose marginally in Asian trade, with focus turning to upcoming economic data releases.

Both indexes benefited from some bargain buying after clocking their worst weekly loss since December 2022- where they slid between 2.3% and 3.5%. Rising wages are a key consideration for the Bank of Japan to raise interest rates further, and are expected to increase substantially in the coming months. More rate hikes present a ceiling for Japanese shares, with the Nikkei expected to stall around 40,000 points. Losses in Chinese markets were driven by renewed concerns over the property sector, after defaulted developer Shimao Group was slapped with a demand to liquidate by a top creditor. Shimao’s liquidation bid adds to a growing list of Chinese developers facing such a scenario. Recently, Evergrande Group was also ordered to liquidate by a Hong Kong court, while beleaguered developer Country Garden was also hit with a winding up petition. This in turn fueled persistent concerns over an extended downturn in China’s property market, which threatens a broader economic recovery in the country

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