Asia-Pacific markets saw a boost on Monday as China’s industrial profits rose by 4.3% year on year in the first four months of the year, according to official data from the National Bureau of Statistics. This increase in profits contributed to the positive outlook in the region, with Mainland China’s benchmark CSI 300 index climbing 0.21% and Hong Kong’s Hang Seng index adding 0.4%.
Investors are eagerly anticipating more economic data from China and India later in the week. China is set to release its official purchasing managers’ index reading on Friday, which will provide further insights into the health of the world’s second-largest economy. Meanwhile, India will be posting its fiscal fourth-quarter gross domestic product numbers, adding to the economic backdrop in the region.
Japan’s Nikkei 225 climbed 0.22% on Monday, with the broad-based Topix also rising by 0.3% after rebounding from losses seen on Friday. South Korea’s Kospi was up by about 0.5%, while the small-cap Kosdaq remained flat. In Australia, the S&P/ASX 200 gained 0.8%, indicating a positive turnaround after a four-day losing streak.
Last Friday, the Nasdaq Composite closed at a fresh record high, driven by gains in chipmaker Nvidia that outweighed concerns about potential delays in interest rate cuts by the Federal Reserve. The tech-heavy index advanced by 1.1%, closing at 16,920.79. The S&P 500 also saw gains of 0.7%, while the Dow Jones Industrial Average edged up by 0.01%.
With positive economic news from China and India, as well as record highs in the U.S. markets, investors in the Asia-Pacific region are feeling optimistic about the week ahead. While uncertainties remain, particularly regarding interest rate cuts, the overall sentiment is positive. As U.S. markets are closed for a holiday on Monday, all eyes will be on the upcoming economic data releases and market performance throughout the week.
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