Asian markets displayed mixed performance on Thursday as trading resumed after the New Year holiday, with Chinese stocks leading losses amid weaker manufacturing data. Meanwhile, Singapore reported accelerated economic growth for 2024, signaling resilience despite regional uncertainties. China’s Caixin/S&P Global manufacturing purchasing managers’ index (PMI) for December fell to 50.5, missing economists’ expectations of 51.7 from a Reuters poll.
The decline from November’s 51.5 indicated marginal growth slowdown. Analysts attributed the drop to weaker export demand influenced by global economic uncertainties and trade disruptions. The official PMI, released earlier, also fell short, registering 50.1 for December. Mainland China’s CSI 300 Index fell 2.91%, closing at 3,820.39, after initially dropping more than 3%. The losses followed President Xi Jinping’s New Year address, where he pledged proactive measures to stimulate economic growth.
Meanwhile, the offshore yuan appreciated 0.14% to 7.3224 against the U.S. dollar, recovering slightly after hitting its weakest level since October 2022. Hong Kong’s Hang Seng Index also posted significant losses, declining 2.37% in late trading. Shares of Sun Art Retail Group tumbled more than 23% after Alibaba Group announced plans to sell its controlling stake in the hypermarket chain. Alibaba shares dropped by over 1%, adding to the broader market downturn.
In South Korea, the Kospi Index dipped to 2,398.94, while the Kosdaq gained 1.24% to close at 686.63. Trading commenced an hour later than usual due to New Year celebrations. Bank of Korea Governor Rhee Chang-yong emphasized in a statement the need for flexible monetary policies amid rising political and economic uncertainties. The central bank is expected to announce its next interest rate decision later this month, following recent consecutive rate cuts – the first since 2009.
Australia’s S&P/ASX 200 climbed 0.52% to close at 8,201.2, supported by gains in financial and resource sectors. Markets in Japan remained closed for the holiday week. In Singapore, the economy expanded by 4.3% year-on-year in the fourth quarter of 2024, according to the Ministry of Trade and Industry. Although growth slowed from the previous quarter’s 5.4%, full-year GDP growth reached 4%, up from 1.1% in 2023. Preliminary data, based on early estimates, is subject to revision as additional information becomes available.
U.S. stock futures remained stable as Wall Street prepared to build on its strong 2024 performance. Futures tied to the Dow Jones Industrial Average were flat, while S&P 500 and Nasdaq 100 futures advanced slightly. Major U.S. indices closed 2024 with double-digit gains, as the S&P 500 rose 23.31%, the Dow Jones gained 12.88%, and the Nasdaq climbed 28.64%. Investors in Asian markets continue to monitor economic signals, central bank policies, and global trade trends as they evaluate prospects for 2025. – By MENA Newswire News Desk.