Asian markets saw mixed performance on Thursday, with Chinese stocks leading declines as several markets reopened after the New Year’s holiday. Concerns about slowing manufacturing activity and broader economic uncertainties weighed on investor sentiment.
China’s Caixin/S&P Global manufacturing purchasing managers’ index for December dropped to 50.5, missing expectations of 51.7 from a Reuters poll. This marked a slowdown from November’s 51.5 and October’s 50.3 readings, indicating that growth in the sector had slowed. Wang Zhe, senior economist at Caixin Insight Group, noted that exports dragged on demand due to uncertainties in the global economic environment and trade.
The official purchasing managers’ index, released earlier this week, also disappointed, coming in at 50.1. Mainland China’s CSI 300 fell 1.42%, while the offshore yuan strengthened slightly by 0.21% to trade at 7.3162 against the United States dollar. In Hong Kong, the Hang Seng Index dropped 1.47%, with Sun Art Retail Group shares plunging over 16%. This followed Alibaba Group Holding Limited’s announcement of its plan to sell its majority stake in the hypermarket chain. Alibaba shares also fell 0.73%.
South Korea’s Kospi Index slipped 0.37%, while the Kosdaq gained 0.71%. Markets in South Korea opened later than usual to mark the start of the new year. Central bank governor Rhee Chang-yong emphasized in a speech the need for flexibility in monetary policy amid rising political and economic uncertainties. The Bank of Korea, which recently executed back-to-back rate cuts for the first time since 2009, is set to announce its next interest rate decision later this month.
Australia’s S&P/ASX 200 gained 0.49%, while markets in Japan remained closed for the week. United States stock futures showed little movement, with the Dow Jones Industrial Average futures flat and S&P 500 and Nasdaq 100 futures advancing 0.06% and 0.17%, respectively.
Singapore’s gross domestic product data showed annual economic growth accelerating to 4% in 2024, compared with just 1.1% in 2023. Fourth-quarter growth came in at 4.3% year-on-year, slightly below the 5.4% seen in the previous quarter, based on advance estimates from the Ministry of Trade and Industry.
Meanwhile, the United States stock market ended 2024 on a high note, with the S&P 500 gaining 23.31% for the year, marking its second consecutive year of over 20% growth. The Dow Jones Industrial Average rose 12.88%, while the Nasdaq Composite surged 28.64%. Traders are now gearing up for what they hope will be another strong year.
