Asia-Pacific markets were mostly down on Monday as investors looked to several major central bank decisions due this week, including the Bank of Japan and the People’s Bank of China. The Federal Reserve’s decision on December 18 is also expected to be a key focus for investors, with a 96% chance of a 25-basis-points cut.
The Bank of Japan is expected to hold rates steady when it releases its decision on Thursday, while the People’s Bank of China will announce its loan prime rates on Friday. The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.
In other market news, China released a slew of economic data on Monday, including November numbers for industrial production, retail sales, and home prices in the country. Meanwhile, Hong Kong’s Hang Seng index fell 0.7%, with the mainland China’s CSI 300 down 0.34%. South Korea’s Kospi was trading near the flatline, while the small-cap Kosdaq was up 0.87%.
In South Korea, the country’s parliament impeached President Yoon Suk Yeol on Saturday, and the finance ministry reportedly said it will continue to monitor financial and foreign exchange markets in the wake of the impeachment. Japan’s benchmark Nikkei 225 was up 0.16%, while the broad-based Topix was marginally down. Australia’s S&P/ASX 200 fell 0.31%.
