Stocks in mainland China surged over 8% for its best day in 16 years while Japan’s Nikkei 225 tumbled 4.8% on Monday as investors assessed key economic data from the two countries.
In Japan, the Nikkei 225 dipped sharply lower, 1,910.01 points, or 4.8%, to 37,919.55.
In Japan, the Nikkei closed at 37,919.55, led by losses in real estate stocks, while the largest loser on the index was department store holding company Isetan Mitsukoshi Holdings, down 10.64%. The broad-based Topix fell 3.47% and ended at 2,645.94.
Industrial production in the country dropped 4.9% year on year in August, more than the 0.4% fall in the month before.
On a month-on-month basis, industrial production dropped 3.3%, a sharper decline than the 0.9% expected in a Reuters poll and compared with the 3.1% rise in July
The Japanese yen weakened 0.13% against the dollar, trading at 142.38.
Japan’s August retail sales climbed 2.8% year on year, beating Reuters poll estimates of a 2.3% rise, and up from a revised 2.7% rise in July.
The moves in Japanese markets come as investors digest Shigeru Ishiba’s victory in the Liberal Democratic Party elections last Friday. He will succeed Fumio Kishida as Japan’s prime minister.
In Hong Kong, the Hang Seng gained 501.38 points, or 2.4%, to 21,133.68
Australian stocks closed at an all-time high.
CHINA
In Shanghai, the CSI 300 added 314.17 points, or 8.5%, to 4,017.85
Mainland China’s CSI 300 rallied 8.48%, powered by health-care and tech stocks and closing at 4,017.85. This marks a nine-day winning streak, its best day since September 2008 and its highest point since August 2023.
China’s official purchasing managers’ index reading for September came in at 49.8, better than the 49.5 expected by economists polled by Reuters. However, this marked a fifth straight month of contraction for the manufacturing sector in China.
The Caixin PMI survey, which is a private survey compiled by S&P Global, reported that the manufacturing PMI fell to 49.3 from 50.4 in
September, lower than the 50.5 expected from the Reuters poll.
The Caixin survey also marked the fastest decline in the manufacturing in 14 months.
Markets on the mainland will only be trading on Monday, before closing for the rest of the week due to the Golden Week holiday.
In other markets,
In Korea, the Kospi declined 56.51 points, or 2.1%, to 2,593.27
In Singapore, the Straits Times Index eked forward 11.93 points, or 0.3%, to 3,593.27.
In Taiwan, the Taiex index dumped 598,25 points, or 2.6%, to 22,224.54.
In New Zealand, the NZX 50 stumbled 33.39 points, or 0.3%, to 12,423.82.
In Australia, the ASX 200 gained 57.59 points, or 0.7%, to 8,269.83.