Singapore’s skyline captured on September 18, 2016.
Photo by Rustam Azmi | Getty Images News | CNBC
On Thursday, Asian stock markets exhibited mixed performance as several major exchanges reopened following the New Year’s Day holiday.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) for China dropped to 50.5 in December, falling short of the expected 51.7 from economists surveyed by Reuters. It had recorded a PMI of 51.5 in November and 50.3 in October.
This decrease in the PMI indicates that the “growth pace had slowed since November and was marginal overall,” according to the report.
“Export demand weakened amid increasing uncertainties from the global economic landscape and trade,” stated Wang Zhe, a senior economist at Caixin Insight Group.
The official PMI for December, published on Tuesday, was 50.1, also below expectations.
The CSI 300 index in mainland China fell by 1.61%, while Hong Kong’s Hang Seng Index declined by 2.18%.
In South Korea, the Kospi index dipped slightly by 0.12%, whereas the Kosdaq rose by 0.86% after opening one hour later than usual due to a New Year’s ceremony.
In a New Year’s address made public on Thursday, Rhee Chang-yong, South Korea’s central bank governor, stated that monetary policy will be handled “flexibly and swiftly” in light of the “unprecedented rise in political and economic uncertainties.”
Following a series of back-to-back rate cuts—the first occurrence since 2009—the Bank of Korea is expected to announce its next interest rate decision later this month.
Meanwhile, Australia’s S&P/ASX 200 index increased by 0.41%, and the Japanese markets will remain closed for the remainder of this week.
Asian traders also evaluated Singapore’s GDP figures, which showed a year-on-year expansion of 4.3% in the fourth quarter of 2024, marking a slowdown from the 5.4% growth recorded in the previous quarter.
The preliminary GDP figures are largely based on data collected during the first two months of the quarter and may be revised as more information becomes available, as noted by the Ministry of Trade and Industry.
Overall, the economy grew by 4% in 2024, a significant increase compared to the 1.1% growth in 2023, according to official statistics released on Thursday.
U.S. stock futures showed little movement as traders prepared for the new year, following double-digit annual gains across all three major indexes in 2024.
Futures associated with the Dow Jones Industrial Average remained stable, while S&P 500 futures climbed by 0.06%, and Nasdaq 100 futures increased by 0.17%.
The S&P 500 achieved an annual increase of more than 20% for the second consecutive year, soaring by 23.31% last year, on the back of a 24.2% rise in 2023. The Dow Jones Industrial Average rose by 12.88%, and the Nasdaq saw a growth of 28.64%.
—Contributions from Christina Cheddar Berk at CNBC.
