The Asia-Pacific markets experienced a boost on Monday as China’s industrial profits surged during the first four months of the year. Official data revealed a 4.3% year-on-year increase in China’s industrial profits from January to April, according to the National Bureau of Statistics. This positive growth in profits contributed to a rise in the mainland China’s benchmark CSI 300 index by 0.21%, while the Hang Seng index in Hong Kong also saw a gain of 0.4%.
Investors are eagerly awaiting more economic data releases from both China and India later in the week. China is set to release its official purchasing managers’ index reading on Friday, offering further insights into the world’s second-largest economy. Meanwhile, India will post its fiscal fourth-quarter gross domestic product numbers, giving market participants key information to analyze and interpret. Furthermore, Australia will announce its inflation data for April on Wednesday, with analysts from ING anticipating a slight decrease in the figures.
In terms of market performance, Japan’s Nikkei 225 saw a rise of 0.22%, while the broader Topix index increased by 0.3%, rebounding from losses experienced on Friday. South Korea’s Kospi also showed a positive movement, climbing by about 0.5%, whereas the small-cap Kosdaq remained relatively stable. Similarly, the Australian S&P/ASX 200 index gained 0.8%, indicating a potential end to a four-day losing streak.
The positive momentum in Asian markets was also influenced by the performance of U.S. markets on Friday. The Nasdaq Composite closed at a record high as chipmaker Nvidia saw gains that offset concerns regarding potential delays in interest rate cuts by the Federal Reserve. The tech-heavy index surged by 1.1%, reaching 16,920.79. Additionally, the S&P 500 rose by 0.7% and the Dow Jones Industrial Average marginally edged up by 0.01%. It is worth noting that U.S. markets would be closed on Monday due to a holiday celebration.
The Asia-Pacific markets witnessed encouraging growth and positive movements attributed to various factors, including China’s industrial profits, upcoming economic data releases, and the influence of U.S. market performance. Investors will continue to monitor these developments closely to assess the overall market sentiment and potential opportunities for investment.
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