Asian stock markets traded mixed on Monday as investors processed recent global economic signals and central bank policy prospects.
China’s Shanghai Composite rose 0.46% to CN¥3,068.32 following the People’s Bank of China (PBOC) maintaining interest rates. Hong Kong’s Hang Seng index increased by 1.66% to HK$17,762.00.
Meanwhile, the Japanese market saw slight weakness. The Nikkei 225 index eased 0.64% to ¥33,388.03 after peaking in the previous session. Australia’s S&P/ASX 200 climbed by 0.13% to A$7,058.40 at the close.
Asian markets’ mixed session came after Wall Street’s positive performance Sunday, marking its third straight winning week.
The S&P 500 closed the session 0.13% higher to $4,514.02, the Dow rose by 0.01% to $34,947.28, and the Nasdaq gained 0.08% to $14,125.48.
European stocks also surged the previous week, with Germany’s DAX down 0.14% at €15,896.45 and France’s CAC soaring 0.26% to €7,252.68 amid increased expectations of central banks worldwide cutting interest rates next year.
Investors’ optimism grew as expectations of the Federal Reserve’s (Fed) interest rate cut by late 2024 signaled global easing. A cautious stance remained in certain markets, with some market players awaiting central bank cues for a clearer direction.
Asian Chipmakers Eye Nvidia Earnings
Most Asian stocks posted limited gains on Monday ahead of further hints from the Fed, while chipmaking companies in the region were cautious before Nvidia’s quarterly earnings report on Tuesday.
Japan’s Advantest, Nvidia’s chip testing equipment supplier, closed 1.55% lower at ¥4,644.00. Conversely, South Korean memory chip supplier SK Hynix surged 1.23% to ₩131,500.00.
Taiwan Semiconductor (TSMC), the world’s largest contract chipmaker and a key Nvidia supplier dipped 0.52% to NT$577.00.
Attention will be on Nvidia’s ability to uphold a strong earnings pace through the third quarter.
The company is also expected to offer more hints on artificial intelligence (AI)-driven demand, especially considering major chipmakers, including TSMC and SK Hynix, have warned of faltering demand.