Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Asia report: Most markets fall on interest rate concerns
(Sharecast News) - Asia-Pacific markets started the holiday-shortened week with a mixed performance on Monday, as concerns around the possibility of higher interest rates being maintained for longer lingered. Patrick Munnelly, market analyst at TickMill, said stocks in the region were subdued due to a "red-hot" non-farm payrolls report in the US on Friday, and Federal Reserve chair Jerome Powell's comments indicating a likely delay to a March rate cut.
"In a pre-recorded television interview aired last night, Powell reiterated that more progress on inflation's final descent was needed before the central bank would cut rates, aligning with comments made at last week's policy meeting press conference.
"Powell also indicated that the scale of cuts priced in by financial markets seemed excessive relative to the Fed's own expectations, while suggesting that the first cut would not occur until the middle of the year."
Munnelly noted that the Nikkei 225 was supported by recent currency weakness, with earnings influencing the biggest movers.
"The Hang Seng and Shanghai Composite initially faced pressure from a continuation of the equity rout, but Chinese markets later recovered from their lows."
Stocks in Japan rise, rest of region closes in the red
In Japan, the Nikkei 225 index gained 0.54%, closing at 36,354.16, while the Topix index also saw an uptick of 0.67%, reaching 2,556.71.
Leading gainers on Tokyo's benchmark included Seiko Epson, surging by 10.42%, Chiyoda with an 8.01% increase, and Pacific Metals, rising by 7.19%.
Meanwhile, in China, the Shanghai Composite dipped 1.02% to close at 2,702.18, and the Shenzhen Component declined by 1.13% to reach 7,964.71.
Harbin Xinguang Optic Electronics and Guangzhou Fangbang Electronics both experienced significant losses in Shanghai, dropping by 17.12% and 17.1%, respectively.
Hong Kong's Hang Seng Index slipped 0.15%, closing at 15,510.01, led lower by Longfor Properties, down 4.14%, followed by Hang Lung and Chow Tai Fook Jewellery Group, declining by 3.72% and 3.27%, respectively.
In South Korea, the Kospi fell 0.92% to close at 2,591.31, with SK IE Technology experiencing a notable drop of 10.79%, and KakaoBank declining by 6.14%.
Australia's S&P/ASX 200 index also faced a downturn, dropping 0.95% to close at 7,625.90.
Notable losers in Sydney included Liontown Resources, down 8.21%, and Ramelius Resources, which declined by 7.48%.
New Zealand's S&P/NZX 50 index had a relatively stable day, with a marginal dip of 0.02% to close at 11,928.70.
Fletcher Building and Pacific Edge were among the companies facing losses in Wellington, with declines of 6.61% and 5%, respectively.
In currency markets, the dollar was last 0.07% stronger on the yen, trading at JPY 148.48.
The greenback also saw a slight uptick of 0.19% against the Aussie, reaching AUD 1.5385, while it increased 0.05% on the Kiwi to change hands at NZD 1.6497.
In oil markets, Brent crude futures were last down 0.34% on ICE to reach $77.07 per barrel, and the NYMEX quote for West Texas Intermediate fell 0.46% to close at $71.95.
Raft of data paints mixed picture across region
In economic news, the slowdown in Australia's business activity looked to have eased in January.
The Judo Bank services purchasing managers' index (PMI) rose to 49.1 in January, a notable improvement from the 47.1 recorded in December.
That upturn was attributed to stabilising demand and a shallower decline in export business, resulting in only a marginal decrease in services activity for the month.
Moving to Japan, the au Jibun Bank Japan services business activity index for January climbed to 53.1 from December's 51.5, signifying continued expansion in the sector, with the growth rate reaching its highest point since September.
The survey highlighted the rise in new business inflows and the resurgence of international demand for the first time in five months.
In China, the services sector maintained its expansion streak for the 13th consecutive month in January.
Caixin's private survey reported a services PMI of 52.7, albeit slightly lower than December's 52.9.
The dip was attributed to a softer growth rate in new orders, but the survey noted that employment increased for the second month in a row, and companies expressed optimism about the 12-month outlook for services activity.
"Overall, we think the mixed picture from the Caixin and the National Bureau of Statistics measures highlights the regionally uneven nature of China's recovery," said Pantheon Macroeconomics senior China economist Kelvin Lam.
"Despite more stimulus being deployed this year, we only expect a soft and gradual recovery in domestic demand in 2024, as households are beset by weak confidence, tepid income growth and poor economic prospects.
"While consumer and business confidence is linked to the health of the property and equity markets, we don't expect confidence to be fully restored until these markets improve materially."
Finally on data, Hong Kong experienced a marginal contraction in business activity for January following two consecutive months of expansion.
S&P Global's PMI for the special administrative region came in at 49.9, down from December's 51.3.
The decline was primarily due to a decrease in new business demand during January.
Output continued to expand as firms worked through their existing orders, providing a mixed picture of Hong Kong's economic performance.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.