Asia-Pacific markets mostly fell on Monday after China’s latest stimulus measures and October inflation data failed to meet expectations. This has raised concerns about the economic recovery in the world’s second-largest economy. On Friday, Beijing announced a five-year stimulus package worth 10 trillion yuan ($1.4 trillion) to address local government debt problems.
However, analysts have questioned whether this will be enough to stimulate growth significantly. According to LSEG data, China’s inflation rate declined to 0.3% in October, missing expectations of 0.4% and below the 0.4% seen in September. This marked the second consecutive month of declining inflation.
Hong Kong’s Hang Seng Index fell 1.62% in its final hour, while mainland China’s CSI 300 climbed 0.66% to 4,131.13. Japan’s Nikkei 225 was marginally higher at 39,533.32, while the broader Topix index slipped 0.09% to close at 2,739.68. South Korea’s KOSPI fell 1.15%, ending at 2,531.66, its lowest level since September 11.
The small-cap Kosdaq dropped 1.96% to finish at 728.84. Australia’s S&P/ASX 200 was down 0.43%, closing at 8,266.2.
China’s Singles’ Day, the nation’s equivalent to Black Friday also took place on Monday. Promotions started last month.
China’s stimulus measures fail expectations
Analysts are closely watching the event to gauge consumer spending trends in China. Hao Zhou, chief economist at Guotai Junan International, remarked that while positive factors are building, the Chinese economy still faces headwinds and will need time to pick up. Shares of Singapore Airlines dropped as much as 6.2% on Monday before partially recovering to trade lower by 3.57%.
The decline followed the airline’s report of a nearly 50% fall in net profit for its first half of the fiscal year, amid intensifying competition. Japan’s central bank indicated that its policy rate could reach 1% by September 2025 if the economy grows and inflation rises as expected. However, the Bank of Japan emphasized the need for caution, highlighting that its monetary policies and those of the Federal Reserve are moving in opposite directions.
On Friday in the U.S., the stock market reached new highs, with the Dow Jones Industrial Average rising 259.65 points, or 0.59%, to close at 43,988.99. The S&P 500 gained 0.38% to close at 5,995.54, briefly trading above 6,000. The Nasdaq Composite rose just 0.09% to 19,286.78.
The cryptocurrency market saw mixed results, with Bitcoin inching higher to new records, sitting at $77,014.49. Crypto exchange operator Coinbase experienced a significant rally, gaining about 47% for the week.
