Investing.com — Asian Markets Overview

Most Asian markets fell on Tuesday as traders remained risk-averse ahead of a contentious U.S. presidential election, while Chinese markets were buoyed by strong business activity data.

Focus on China

Attention was also directed towards a meeting of China’s National People’s Congress this week, expected to provide insights on fiscal spending. Regional markets took mixed cues from a negative overnight session on Wall Street, with anticipation surrounding a close race between Donald Trump and Kamala Harris keeping investors cautious. U.S. stock index futures steadied during Asian trading as voting began later in the day.

The Federal Reserve is widely expected to announce a cut in interest rates later this week.

Chinese Stocks Rise on Positive PMI

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes each rose by 0.8%, while Hong Kong’s Hang Seng index added 0.3%. Sentiment toward China improved following purchasing managers index data, indicating a stronger-than-expected growth in the services sector for October. This comes after Beijing introduced significant monetary and fiscal measures, raising hopes for a recovery in Asia’s largest economy amid increased government support.

The Standing Committee of China’s NPC commenced a four-day meeting on Monday, expected to approve further fiscal spending to bolster growth over the coming years.

Australian Stocks Fall with RBA in Focus

Australia’s ASX 200 dropped 0.5% as the Reserve Bank of Australia (RBA) meeting approached, where interest rates are anticipated to remain steady. However, investors are preparing for a potentially hawkish outlook from the RBA, given recent sticky inflation data and a labor market that exceeded expectations. While no immediate rate hikes are expected, a reduction in rates is forecasted only by February 2025, according to analysts at ANZ and Westpac.

Broader Asian markets were mixed, with Japan’s Nikkei 225 and TOPIX indexes increasing by 1.3% and 0.9%, respectively, after a long weekend.

In contrast, South Korea’s KOSPI fell by 0.6% as October consumer inflation data missed expectations, raising the possibility of further interest rate cuts. Although this scenario may positively impact Korean markets, they faced pressures from ongoing losses in the technology sector.

Futures for India’s Nifty 50 index suggested a muted opening, following over 1% declines in the Nifty and BSE Sensex 30 on Monday. Indian stocks were grappling with significant losses in October, amid heavy foreign capital outflows and cooling optimism concerning the Indian economy.