Asia report: Most markets fall in subdued session

(Sharecast News) - Asia-Pacific markets closed with a mixed performance on Monday, as investors monitored economic data ahead of highly anticipated talks between US president Joe Biden and his Chinese counterpart Xi Jinping. The in-person meeting between the two leaders, set to occur later in the week, would be their first in about a year.

Patrick Munnelly, market analyst at TickMill Group, said Asia stock markets put in a subdued performance as the region approached several key risk events.

"Investors exercised caution in anticipation of influential factors, including the release of US consumer price index (CPI) data, Chinese activity data, the Biden-Xi meeting, and the looming US government shutdown deadline," he noted.

"In Japan, the Nikkei 225 initially saw gains following softer-than-expected producer price index (PPI) data but later reversed its upward trajectory amid increasing yields and ongoing earnings reports."

Munnelly added that the Hang Seng Index and Shanghai Composite traded cautiously, with optimism stemming from Alibaba and JD.com's strong Singles Day sales tempered by market hesitancy ahead of key Chinese economic data releases and the Biden-Xi summit.

"The cautious sentiment across the region underscores the impact of pending events on market dynamics and the overall risk environment."

Most markets in the red after quiet trading session

In Japan, the Nikkei 225 edged up by a marginal 0.05% to reach 32,585.11 points, while the Topix index experienced a minor dip of 0.004% to settle at 2,336.62.

Notable gainers on Tokyo's benchmark included Mitsui Mining and Smelting, surging by 10.42%, Credit Saison with an impressive 7.96% gain, and Isuzu Motors, which climbed by 7.68%.

China's markets showed a slightly positive trend, with the Shanghai Composite rising by 0.25% to 3,046.53 points and the Shenzhen Component showing a modest gain of 0.1% to reach 9,988.83.

Shanghai's bourse was led by Fujian Forecam Optics, soaring by 14.36%, and Danhua Chemical Technology, which posted a solid gain of 10.18%.

Hong Kong's Hang Seng Index managed gains of 1.3%, reaching 17,426.21 points.

Leading the positive momentum in the special administrative region was Xinyi Solar, which advanced by 6.64%; Sino Biopharmaceutical, with a 6.1% increase; and Lenovo Group, up by 4.64%.

South Korea's Kospi experienced a minor decline of 0.24%, settling at 2,403.76, with the losers including HYBE, down by 4.48%, and Hanwha Ocean, which posted a decline of 4.43%.

In Australia, the S&P/ASX 200 declined by 0.4% to 6,948.80 points, with notable decliners including APM Human Services, falling by 12.5%, and TPG Telecom, which posted an 11.74% decline.

Meanwhile, New Zealand's S&P/NZX 50 slightly decreased 0.43%, ending the day at 11,093.03 points.

Wellington's losses were led by Oceania Healthcare, down by 5.56%, and Restaurant Brands, which posted a decline of 5.41%.

In currency markets, the dollar was last 0.14% stronger on the yen, trading at JPY 151.73.

Meanwhile, the greenback was mixed against its downunder counterparts, falling 0.25% on the Aussie to AUD 1.5682, while it managed modest gains of 0.09% against the Kiwi to change hands at NZD 1.6989.

On the oil front, Brent crude futures were last up 0.25% on ICE at $81.63, while the NYMEX quote for West Texas Intermediate was ahead 0.26% at $77.37 per barrel.

Wholesale inflation slows in Japan, NZ services sector contracts

In economic news, Japan's wholesale inflation decelerated last month, according to data from the Bank of Japan.

In October, the central bank's corporate goods price index registered a modest 0.8% increase compared to the same month last year.

That was slightly below the 0.9% rise anticipated by economists polled by Reuters.

The reading also marked the first time wholesale inflation in Japan dipped below the 1% threshold since February 2021.

October's data was the 10th consecutive month of declining wholesale inflation, suggesting that cost pressures in the country were gradually subsiding.

Meanwhile, according to fresh survey data, New Zealand's services sector experienced a contraction in October, driven by a slowdown in sales and new orders.

The BNZ/BusinessNZ performance of services index for the month registered at 48.9, reflecting a decline of 1.7 points compared to the prior month.

That also stood notably below the long-term average of 53.5.

This development came after a similar trend was seen in New Zealand's manufacturing sector, which contracted at its most significant rate in two years during October.

Reporting by Josh White for Sharecast.com.