Asia-Pacific markets bounced back from Friday’s downturn as investors await key data releases from China, Japan, and South Korea this week.
The regional markets experienced a sharp decline on Friday following Israel’s strike at Iran, leading to a drop in stocks and a rise in safe-haven assets.
On Monday, China kept its one-year and five-year loan prime rates steady at 3.45% and 3.95% respectively. The stability of the five-year LPR is crucial as it serves as the benchmark for most property mortgages.
Hong Kong’s Hang Seng index surged nearly 2%, while Mainland China’s CSI 300 slipped 0.3% to close at 3,530.9 after the LPR announcement, making it the only major market to end lower on Monday.
Japan’s Nikkei 225 index closed 1% higher at 37,438.61, while the broader Topix index recorded a larger gain of 1.38% to finish at 2,662.46.
South Korea’s Kospi index also rose by 1.45% to close at 2,629.44, with the small-cap Kosdaq advancing 0.46% to end at 845.82.
In Australia, the S&P/ASX 200 started the week on a positive note, closing 1.08% higher at 7,649.20.
Meanwhile, in the U.S. on Friday, the Nasdaq Composite and S&P 500 posted losses for the sixth consecutive session, marking their longest losing streak since October 2022.
The decline was driven by Nvidia’s downturn, adding to concerns over geopolitical tensions and persistent inflation. However, the Dow Jones Industrial Average bucked the trend, rising by 0.56%, propelled by a more than 6% rally in American Express shares following earnings.
Li Auto, a Chinese electric vehicle maker, led declines among its peers in Hong Kong, dropping 8.8% to its lowest level in 11 months.
The company announced price cuts for its models, including the L7, L8, L9, and the newly launched MEGA SUV, with reductions of up to 30,000 yuan ($4,141.64). This move came after Tesla slashed the starting price of its Model 3 in China to 231,900 yuan on Sunday, a reduction of 14,000 yuan.
Shares of other Chinese EV makers, including Nio, Xpeng, and BYD, also fell in response to the news.
