Asia Mkts Begin Week On Positive Note

Hong Kong: Asian stocks started the week with modest gains after US stocks finished their best week of the year, approaching record levels.Hong Kong's Hang Seng swung between gains and losses during the day and closed less than 0.1 per cent higher at 17,371.36 after data released over the weekend showed China's economy slowed further in August. Factory output, retail sales, and investment failed to meet expectations. Meanwhile, the unemployment rate unexpectedly surged to a six-month high, adding further challenges. “The drums of a deepening economic slowdown are beating louder, and it's time for China's leadership to decide whether to step up or risk sliding further into stagnation,” Stephen Innes of SPI Asset Management said in a commentary. Australia's S&P/ASX 200 added 0.3 per cent to 8,121.60. Markets in Japan, mainland China and South Korea were closed for holidays.

Investors will be closely watching the Federal Reserve's policy meeting on Tuesday and Wednesday, when the central bank is expected to announce its first interest rate cut since 2020. The Bank of Japan's policy meeting on Thursday and Friday is expected to leave Japan's rate unchanged. In currency trading, the Japanese yen strengthened against the greenback, with the dollar falling to 139.75 yen from 140.82 yen. The euro cost $1.1115, inching up from $1.1076. US futures dropped while oil prices were higher. On Friday, the S&P 500 rose 0.5 per cent to 5,626.02 for a fifth straight gain. It is just 0.7 per cent below its all-time high set in July. Rallies for Microsoft, Broadcom and other big technology stocks helped it claw back almost all its recent losses, the worst in nearly 18 months. The Dow Jones Industrial Average jumped 0.7 per cent to 41,393.78 and the Nasdaq composite added 0.7 per cent to 17,683.98. Stocks also got support from the bond market, where Treasury yields eased ahead of the Fed's meeting. The unanimous expectation on Wall Street is for the Fed to deliver the first cut to interest rates in more than four years on Wednesday, and traders are rekindling hopes it may offer bigger-than-usual relief.