China’s economy is struggling due to slow economic growth, impacting the manufacturing and real estate sectors. Asian market indexes like the Nikkei 225 Index of Tokyo fell to -0.16%, while Hong Kong’s HSI index slid down by -1.77%. The benchmarks of Australia and China slipped, while for South Korea, they changed slightly. Japanese equities advanced on Monday as corporate profits surpassed expectations. In Hong Kong, the benchmark is declining, with the shares of New World Development Co. falling to 12%, posting its first annual loss in the last two decades.
“Even if mortgage refinancing policy materialises, it’s not a policy to revive the housing market because it has nothing to do with the new home demands, mainly benefiting the existing homeowners,” says Haibin Zhu, chief China Economist.
US contracts have also slid down, and the S&P 500 is in reversal after closing at its highest, as the data supports Federal Reserve rate cuts. September 2024 will be historically the most volatile month for the global market, with the worst stock performance in the last four years. Traders will focus more on Caixin China manufacturing PMI after the factory’s activity contracted after four straight months; however, the dollar outperformed with the highest points. As US stock showcased, consumer sentiments improved prospects for Fed cuts, raising the expectations for personal finance, while the core personal consumption expenditure price index rose slowly.
