Stock markets: The Asian stock markets had a slow start to the week, experiencing mixed trading on Monday due to China reporting a decline in wholesale prices for June. This, along with other signs of a slowing economy, has affected benchmarks in different regions. While Hong Kong, Shanghai, and Mumbai saw an increase, Tokyo and Sydney saw a decrease. US futures and oil prices have also declined.
The drop in producer prices by 5.4% in June, compared to a 4.6% decrease in May, indicates a further weakening of demand across various industries. The slowdown is a result of the slowing economy in China, the world’s second-largest economy, as well as the tapering growth in the US and Europe due to several interest rate hikes aimed at controlling inflation.
China’s Economic Slowdown:
China’s economy has slowed down faster than anticipated, following an initial surge in growth after recovering from the disruptions caused by the COVID-19 pandemic. In China, stock markets typically respond positively to signs of weakness in anticipation of potential stimulus measures that can increase investment in shares.
Hong Kong’s Hang Seng index rose 0.8% to 18,510.77 and the Shanghai Composite index increased by 0.2% to 3,202.06. However, Tokyo’s Nikkei 225 fell by 0.8% to 32,126.15, and the Kospi in Seoul dropped 0.1% to 2,525.85. Australia’s S&P/ASX 200 also declined by 0.3% to 7,018.30.
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The Indian Sensex increased by 0.2%, while the SET index in Bangkok decreased by 0.1%.
As expected, US Treasury Secretary Janet Yellen concluded her visit to Beijing without major agreements or breakthroughs in the strained relationship between the two countries. Despite disputes over various issues, including access to advanced technologies, Chinese territorial ambitions, and allegations of human rights abuses, Yellen stated that relations were on a “surer footing” and that the two sides would continue to engage in dialogue.
(With PTI inputs)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
