Asia-Pacific Markets Fall as Investors Assess Business Activity Figures
Visitors purchase cosmetics during the China International Beauty Expo (CIBE) Beijing 2023 at the China National Convention Center on February 22, 2023 in Beijing, China.
Asia-Pacific markets fell on Monday as investors assessed business activity figures from several key economies in the region. China’s Caixin services purchasing managers’ index (PMI) from S&P Global rose to 52.2 in December, the service sector’s fastest expansion since May 2024. China’s central bank said it would implement a “moderately loose” monetary policy in 2025 to boost growth.
Hong Kong’s PMI declined in December compared to the month before, while India’s service PMI expanded at its fastest pace in four months, with final figures for December coming in at 59.3 compared to 58.4 in November.
The Hong Kong Hang Seng index opened higher after the PMI reading, but fell 0.52%, while mainland China’s CSI 300 also fell 0.57%. Japan’s benchmark Nikkei 225 shed 1.47% to end at 39,307.05, leading losses in Asia and dragged by consumer cyclical stocks.
On the other hand, South Korea’s Kospi was up 1.91% to 2,488.64, while the small-cap Kosdaq was 1.73% higher at 717.96 and hit its highest level since November 11.
Political uncertainty continues to grip South Korea, with the country’s head of presidential security service reportedly saying over the weekend he could not comply with efforts to arrest impeached president Yoon Suk Yeol. A bid to arrest Yoon on grounds of insurrection last Friday failed after investigators were locked in a stand-off with presidential security officials.
Australia’s S&P/ASX 200 pared gains to trade just above the flatline, ending at 8,257.4.