Asian Stocks Up, More US and Chinese Economic Data in Sight

Asian stocks climbed on Tuesday as traders awaited crucial economic data from the US and China, while regional markets posted solid gains in November.

Australia’s S&P/ASX 200 index logged a better performance, rising by 0.39% to A$7,015.20 on robust real estate and mining stocks. Lynas Rare Earth Ltd. increased by 1.38% to A$6.60 as China planned export restrictions on rare earths this week, curbing global supplies.

Furthermore, Australia’s retail sales declined by 0.2% from its previous 0.9%, lifting expectations of easing inflation and a less hawkish Reserve Bank of Australia (RBA).

RBA Governor Michele Bullock noted that the country’s inflation mainly followed overseas trends, emphasizing cautious rate increases to mitigate price pressures effectively.

South Korea’s KOSPI was up by 1.05% ₩2,521.76, despite consumer confidence collapsing to 97.2% in November from its previous 98.1%. Still, sentiment stayed significantly high from 2023 lows amid recent improvements in the country’s economy, reflecting a positive outlook.

The India Nifty 50 futures index traded positively after a long weekend, opening 0.14% to ₹19,823.35. Philippines’ PSEi Composite index led gains over Southeast Asia and closed the session 0.64% higher to ₱6,309.57.

However, Japan’s Nikkei 225 dropped by 0.11% to ¥33,408.39, pausing a rally to 33-year highs as investors await further economic cues. The country’s industrial production and retail sales data will be released later this week.

Meanwhile, regional markets lowered as the US indexes declined on Monday, ahead of further economic signals this week.

Data for the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) prices, will be published on Thursday.

The US’s November purchasing managers’ index (PMI) data will also be posted on the same day, while a revised gross domestic product (GDP) reading for the third quarter is due this week.

Chinese Shares Fall Behind, PMI In Focus

Chinese shares fell behind other Asian stocks ahead of the release of China’s composite purchasing managers’ index (PMI) data.

The Shanghai Shenzhen CSI 300 index and the Shanghai Composite index traded flat before surging 0.02% to CN¥3,512.57 and 0.10% to CN¥3,034.80, respectively. Hong Kong’s Hang Seng fell by 0.57% to HK$17,429.50.

Weaknesses were mainly due to declining property stocks, reflecting investors’ impatience for further government support in the sector.

China’s PMI data for November, due on Thursday, is anticipated to provide insights into the business activity of the world’s second-largest economy following lackluster activity in October. Data on Monday also presented steady, although a gradual dip in Chinese industrial profits.

Chinese stocks have largely trailed Asian peers in November amid worries about an economic slowdown and impatience over Beijing’s additional stimulus measures.

The blue-chip CSI 300 index slipped 1.6% this month, marking its fourth consecutive month in the red, while the SSE Composite Index traded slightly higher.

On the other hand, the Nikkei and the KOSPI have risen between 8% and 11% so far in November, while the S&P/ASX 200 and the Nifty increased by almost 4%.