Asian markets started the week on a mixed footing, as investors weighed a positive handover from Wall Street against a fresh round of disappointing manufacturing data from China that clouded the economic outlook for the region.
South Korea’s market surged to a new record high, leading gains, while Chinese stocks faltered, creating a divergent performance across Asia-Pacific indexes. Japan’s markets were closed for a public holiday.
The standout performer in the region was South Korea, where the benchmark Kospi index jumped 2.16%, touching a new intraday high.
The rally was broad-based, with the small-cap Kosdaq index also gaining 1.18%, signaling strong investor confidence in the local market.
The positive momentum followed a strong closing session on Wall Street on Friday, where all three major US indexes finished in positive territory.
In contrast, sentiment in China was dampened by new data showing a further slowdown in the country’s vast manufacturing sector.
The RatingDog purchasing managers index for October came in at 50.6, missing economist expectations of 50.9 and falling from September’s 51.2 reading.
This followed the official government PMI released on Friday, which showed factory activity shrinking to 49.0, its lowest level in six months and a clear sign of contraction.
The weak data took a toll on local markets, with mainland China’s CSI 300 dipping 0.62%, although Hong Kong’s Hang Seng index managed to rise 0.33%.
A more cautious tone was evident in Australia, where the S&P/ASX 200 traded 0.24% lower. The country’s central bank, the Reserve Bank of Australia, begins its two-day monetary policy meeting today.
Economists widely expect the RBA to hold interest rates steady after third-quarter inflation readings came in hotter than expected, adding a layer of uncertainty for investors.
Indian markets brace for a tepid start
In India, the benchmark indices were set for a weak start to the week, tracking the divergent trends across Asia.
In the pre-opening session, the Sensex fell over 200 points, or 0.31%, while the Nifty was trading below the key 25,600 level, down 0.22%.
Investors on the domestic front are continuing to monitor second-quarter corporate earnings and developments in the US-India trade deal.
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