Chinese markets closed mixed at the close of trading on Monday, June 16, the opening session of the week, after economic figures fell short of expectations. Japanese markets were closed for the Day of Respect for the Elderly, while the South Korean index hit a new record high amid market anticipation of the US Federal Reserve’s meeting on Wednesday.
Figures released this morning showed that retail sales in China rose 3.4% year-on-year in August, compared to 3.7% in July, missing expectations of a 3.9% increase. Sales excluding auto consumption rose 3.7%, with rural consumption outpacing urban consumption. In contrast, Chinese industrial production slowed to a below-expected 5.2% in August year-on-year, compared to 5.7%, its weakest performance since August 2024.
Fixed-asset investment expanded 0.5% in August, compared to 1.6% in July, as real estate investment contracted 12.9% in the first three months of the year. Investment in the manufacturing and utilities sectors rose, while the unemployment rate in urban areas reached 5.3%.
Markets are awaiting the Federal Reserve’s dovish policy meeting on Wednesday, September 17, with expectations that the bank will cut interest rates by 25 basis points for the first time this year. Attention will be focused on the bank’s outlook for the remainder of the year.
Chinese indices were mixed today, with the broader CSI300 index rising by about 0.24% to close at 4,533 points, while the Shanghai Composite Index closed down 0.26% at 3,860. The Hang Seng Index, Hong Kong’s main index, rose slightly today, closing at 26,406 points in pre-market trading. Li Auto and BYD led the index’s gains, adding more than 3.5%.
In contrast, South Korea’s Kospi index rose by 0.35% in today’s session, its tenth consecutive session of gains, closing at 3,407 points, setting a new record high. Markets were boosted by comments from Finance Minister Ko Yeon-cheol, who announced that the government would cancel its previous plan to increase taxes on stock investments.
India’s Sensex index rose by 0.03% before closing at 81,928 points, while the Nifty 50 index declined by 0.05% to trade at 25,099 points. New Zealand stock markets closed with losses today, with the NZX50 index falling 0.15% to close at 13,208 points, while Australia’s ASX200 index fell 0.13% to close at 8,853 points. Singapore’s main index fell 0.16% in pre-market trading