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Asian equity markets displayed a diverse performance on Thursday as several significant exchanges reopened following the New Year’s holiday.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) for China recorded a decline in December, dropping to 50.5. This figure fell short of economists’ expectations, which had predicted a reading of 51.7 in a Reuters poll. A contrast to previous months, the PMI stood at 51.5 in November and 50.3 in October. The reduction in the PMI indicates a slowdown in economic growth, marked by weaker sales and declining export orders, according to analysts.
The official PMI, which was disclosed earlier in the week, also underwhelmed with a reading of 50.1, falling short of projections.
In market reactions, Mainland China’s CSI 300 index fell by 0.48%, while Hong Kong’s Hang Seng Index registered a loss of 1.75%. In contrast, South Korea’s Kospi index experienced a modest increase of 0.34%, with the Kosdaq rising by 1.23%, following a delayed market opening for a ceremonial event marking the New Year.
Rhee Chang-yong, the governor of South Korea’s central bank, stated in a New Year’s address that the monetary policy would be “managed with flexibility and agility” in light of the “unprecedented rise in political and economic uncertainties.” The Bank of Korea, which has recently executed consecutive interest rate cuts for the first time since 2009, is expected to announce its next interest rate decision later this month.
Australia’s S&P/ASX 200 index saw a rise of 0.35%. Meanwhile, trading in Japan remained suspended for Thursday and Friday.
Investors in Asia are also processing Singapore’s economic growth data. According to preliminary estimates, the country’s economy expanded by 4.3% year-on-year in the last quarter of 2024, a deceleration from the 5.4% growth observed in the third quarter. These initial GDP estimates are primarily based on data collected in the first two months of the quarter and are subject to revision as more comprehensive information becomes available, as noted by the Ministry of Trade and Industry.
The annual economic growth for 2024 reached 4%, a significant rise from the 1.1% recorded in 2023, according to official figures released on Thursday.
In the United States, stock futures showed minimal variation as traders prepared for a new year, following a year where all three major indexes achieved double-digit gains in 2024. Futures related to the Dow Jones Industrial Average remained unchanged, while S&P 500 futures edged up by 0.06%, and Nasdaq 100 futures exhibited a 0.17% increase.
The S&P 500 experienced an impressive annual growth of over 20% for the second consecutive year, rising 23.31% in the past year after a 24.2% gain in 2023. Similarly, the Dow Jones Industrial Average posted a 12.88% increase, while the Nasdaq rose by 28.64%.
—CNBC’s Christina Cheddar Berk contributed to this report.
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