Asia-Pacific markets trade mixed on Monday as traders are assessing an economic data dump out from China, including November numbers for industrial production, retail sales and home prices in the country and Japan's factory activity and core machinery orders in Japan. Investors are also looking ahead to several major central bank decisions due this week including the Bank of Japan and the People’s Bank of China. Japan ( NKY:IND ) rose +0.04% rose to around 39,600, while the broader Topix Index gained 0.05% to 2,748 on Monday, the Japanese yen depreciated toward 154 per dollar on Monday, hitting its weakest levels in three weeks amid bets that the Bank of Japan will forgo an interest rate hike this week. On the economic front, data showed that core machinery orders in Japan, a leading indicator of capital spending in the coming six to nine months, topped expectations in October. Japan's factory activity shrinks for sixth straight month, services activity improves in December . China ( SHCOMP ) rose +0.01% to around 3,395 while the Shenzhen Component fell 0.9% to 10,615 on Monday, with mainland stocks struggling for clear direction and the offshore yuan weakened further around 7.28 per dollar, as traders digested mixed economic data. Data showed that retail sales in China slowed more than expected in November , while industrial production grew more than anticipated. New home prices in the country also declined for the 17th consecutive month in November, amid a prolonged property downturn. Additionally, the unemployment rate held steady at 5%, in line with expectations. In November 2023, the surveyed unemployment rate was also 5%. Foreign direct investment into China shrank by 27.9% year-on-year to CNY 749.7 billion in the first eleven months of 2024, compared with a 29.8% plunge in the previous period, according to data from the Ministry of Commerce. As reported by Bloomberg, citing the 21st Century Business, the People's Bank of China is set to cut interest rates and reserve requirements next year. In a statement released after the release of November activity data, the National Bureau of Statistics said China's domestic demand is insufficient while the external environment is complex. Hong Kong ( HSI ) fell -0.76% to 19,836, extending falls from the prior session as traders reacted to November activity data in China. India ( SENSEX ) fell -0.61% to 81,819 in Monday morning trade, as traders took profit after the BSE Sensex hit its highest level in over two months in the previous session. Total passenger vehicle sales in India grew by 4.3% year-over-year to 300,459 units in November 2024, following a 1.1% rise in the previous month, according to data from the Society of Indian Automobile Manufacturers. The figures exclude sales from BMW, Mercedes, JLR, and Volvo. The private sector in India expanded the most in four months, with the manufacturing expanding faster, while the services sector grew the most since August. Australia ( AS51 ) fell -0.56% to close at 8,250 on Monday, marking its lowest point in nearly a month, as mining stocks led the downturn amid weaker metals prices. The South Korean won ( USD:KRW ) stabilized at 1,433 per dollar following the weekend impeachment of President Yoon Suk Yeol. Political uncertainty in South Korea eased after the legislature initiated the impeachment on Saturday in response to Yoon's controversial attempt to impose martial law, which ended in failure. In the U.S., on Friday, all three major indexes ended mixed with concerns over the Federal Reserve’s upcoming policy decision and economic conditions limiting further gains. U.S. stock futures were little changed on Monday as investors braced for the Federal Reserve’s upcoming policy decision this week: Dow +0.05% ; S&P 500 -0.02% ; Nasdaq -0.04% . The price of bitcoin ( BTC-USD ) surged above $106,000 on Monday before paring some gains, driven largely by US President-elect Donald Trump's support for digital assets and plans to make the sector more regulated. Week Ahead : Traders are now shifting their attention to the Federal Reserve’s upcoming policy decision later this week, where the bank is expected to deliver a 25bps cut. Other key highlights in the US include retail sales, PCE prices, personal income and spending, the final estimate of GDP growth, industrial production, manufacturing and services PMIs, building permits, housing starts, and existing home sales. In the UK, the BoE's policy decision, inflation figures, retail sales, and jobs report will draw attention. Japan will feature the BoJ's interest rate decision, inflation and foreign trade data. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China's Nov retail sales slows as stimulus impact fades; unemployment rate held steady Japan's factory activity shrinks for sixth straight month, services activity improves in December Australia's jobless rate falls to 8-month low of 3.9% in November China's trade surplus largest in 5 months; exports slow while imports fall amid trade uncertainties Chinese fintech stocks surge after China signals looser monetary policy
