Most Asian markets closed lower on Monday, May 19, the opening session of the week. This was similar to the US stock market indices, which were affected by Moody’s downgrade of the United States’ credit rating. China was also affected by the disappointing figures announced this morning.
Moody’s announced at the end of last week that it had downgraded the long-term credit rating of the world’s largest economy to Aa1 from AAA, citing a worsening fiscal deficit and an increased refinancing burden amid rising interest rates. The agency joined Fitch and Standard & Poor’s in downgrading the United States.
Regarding economic data released this morning, figures from China’s National Bureau of Statistics showed retail sales in the world’s second-largest economy slowed in April to 5.1%, compared to 5.9% in March, falling short of expectations of 6% growth. Meanwhile, industrial production grew by about 6.1% in April, compared to 7.7% in March, while expectations were for a 5.7% growth. The unemployment rate fell to 5.1% in April from 5.2% in urban areas.
Fixed-asset investment, which includes investment in real estate and infrastructure, rose to 4% in the first four months of the year, below expectations, while customs figures showed a 21% decline in shipments to the United States in April.
These figures from China come before the 90-day trade truce between Beijing and Washington, announced last week, took effect. Therefore, May figures are expected to be better than expected as the impact of tariffs eases. The Nikkei index closed at 37,498 points, down 0.68%, or 255 points, while the Topix index of the Tokyo Stock Exchange fell by approximately 0.08% today, closing at 2,738 points. Lasertec and Keisei Electric led the Nikkei’s losses, falling more than 4.5%.
In his speech to parliament this morning, Japanese Prime Minister Ishiba opposed the idea of ​​tax cuts and financing them with Japanese government bonds, emphasizing that his country’s economic situation is dire, while avoiding discussing interest rates.
Chinese indices recorded some declines in today’s opening session, with the broader Chinese CSI300 index falling by approximately 0.31% today, closing at 3,877 points, while the Shanghai Composite Index of the Shanghai Stock Exchange closed flat, down 0.00%, at 3,367 points. The Hang Seng Index, Hong Kong’s main index, fell by about 0.01% today, closing at 23,342 points, with declines in optical technology company Sunny Optical TEC and Alibaba leading the index’s losses, with declines of more than 3%.
Xiaomi shares rose by 2.65% in the opening session after the phone and electric car manufacturer announced plans to invest at least 50 billion yuan ($6.93 billion) in chip design.
In contrast, South Korea’s Kospi index fell by about 0.89% in today’s session, closing at 2,603 ​​points.
India’s Sensex index fell by about 0.18% before closing at 82,178 points, while the Nifty 50 index fell by about 0.16% to trade at 24,974 points. New Zealand stock markets closed with losses today, with the NZX50 index falling 1.23% to close at 12,629 points, while Australia’s ASX200 index fell 0.58% to close at 8,295 points. Singapore’s main index fell 0.49% in pre-market trading.