Asia-Pacific markets mostly lower on Monday, taking cues from a weak lead on Wall Street on Friday, following disappointing US retail sales data. Investor sentiment also remained cautious amid ongoing concerns over US tariffs under President Donald Trump and broader global economic uncertainties. It is Presidents' Day and both the U.S. stock market and bond market will be closed. Japan ( NKY:IND ) rose 0.12% to 39,200, while the broader Topix Index advanced 0.2% to 2,765 on Monday, recovering some of the losses from the previous session as investors responded positively to Japan’s better-than-expected economic growth figures. The Japanese yen strengthened past 152 per dollar on Monday, marking its third consecutive session of gains. Japan’s economy expanded by 0.7% quarter-on-quarter in the fourth quarter , up from 0.4% growth in the previous quarter and surpassing forecasts of 0.3%. On an annualized basis, Japan’s GDP grew 2.8% in Q4, in line with estimates and accelerating from 1.7% growth in Q3. Japan's industrial production declined by 0.2% month-over-month in December 2024, contrary to flash data predicting a 0.3% increase. China ( SHCOMP ) fell 0.31% to 3,348 while the Shenzhen Component rose 0.6% to above 10,800 on Monday, with Chinese stocks looking to build on recent gains as investors kept an eye on a high-profile symposium led by President Xi Jinping, designed to boost private sector sentiment. The offshore yuan edged higher around 7.25 per dollar, building on recent gains to a three-week high, as the People’s Bank of China signals continued support for the currency. PBOC Governor Pan reaffirmed that the central bank will allow the market to play a decisive role in determining the yuan’s exchange rate while ensuring stability amid global volatility. On economic data, Chinese banks extended a record level of CNY 5130 billion in new yuan loans in January. Meantime, China also posted a record-high current account surplus in Q4 of 2024. Meanwhile, a high-profile symposium led by President Xi Jinping, featuring business leaders like Alibaba co-founder Jack Ma, aims to boost private sector sentiment and strengthen ties between government and business, signaling support for growth and economic stability. Hong Kong ( HSI ) fell 0.88% to 22,941 in early trade on Monday. India ( SENSEX ) fell 0.25% Australia ( AS51 ) fell 0.22% to close at 8,437 on Monday, retreating from record highs, with heavyweight banks leading the decline. The Australian dollar rose above $0.635 on Monday, reaching a two-month high as investors prepared for the Reserve Bank of Australia’s upcoming monetary policy decision. Domestically, investors are closely watching the Reserve Bank of Australia's policy decision this week, where it could potentially sound hawkish as trimmed mean inflation remains above the 2%-3% target range. In the U.S., on Friday, all three major indexes ended mixed as traders shrugged off a fall in January retail sales. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s services sector growth slows to four-month low in January Japan’s Jan services PMI revised upward to 53; real wages rises for 2nd consecutive month Trump in 'no hurry' to speak to China's Xi Jinping over escalating trade tensions Tit-for-Tat: China hits back with tariffs on U.S. coal and LNG, unveils Google probe U.S. will delay Canada tariffs as countries work on beefing up border security
