Asia-Pacific Markets End Mixed as Investors Assess Economic Data and Trade Developments

Asia-Pacific markets delivered a mixed performance on Monday as investors digested a wave of economic data and monitored progress in global trade negotiations, CNBC reports.

Market sentiment was influenced by industrial output reports from Japan and South Korea, as well as China’s latest manufacturing indicators.

In China, manufacturing activity contracted for the third consecutive month in June, reinforcing expectations that authorities may introduce further stimulus measures to counter the impact of ongoing trade disruptions with the United States. Despite the weak data, mainland China’s CSI 300 index managed to rise 0.37% to close at 3,936.08, while Hong Kong’s Hang Seng Index fell 0.87% to 24,072.28.

Japan’s Nikkei 225 continued its upward momentum, closing 0.84% higher at 40,487.39 after touching an 11-month high earlier in the session. The broader Topix index also gained 0.43% to finish at 2,852.84, buoyed by strong performances from companies such as Olympus and SoftBank Group.

South Korea’s Kospi index advanced 0.52% to 3,071.70, while the tech-focused Kosdaq was largely unchanged at 781.50. Data showed South Korea’s industrial production fell 2.9% in May, marking the second straight monthly decline and missing market expectations.

Australia’s S&P/ASX 200 index rose 0.33% to close at 8,542.30, continuing its modest upward trend.

In contrast, India’s markets saw a decline. The Nifty 50 dropped 0.53%, and the BSE Sensex fell 0.54%, reflecting some profit-taking after recent gains.

The mixed trading in Asia came as US equity futures edged higher during Asia-Pacific hours, following a strong finish last Friday. The S&P 500 hit a fresh record, closing above 6,173. The Nasdaq Composite and Dow Jones Industrial Average also posted gains, reflecting improved sentiment as investors responded positively to easing trade tensions and resilient US economic data.

In Hong Kong, tech stocks outperformed the broader market. The Hang Seng Tech Index rose slightly even as the broader benchmark declined. Key gainers included Kingsoft Corporation and Tencent Music Entertainment Group, which each advanced more than 2%.

Meanwhile, Japan’s rally was driven in part by positive movement in industrial and energy-related stocks. The country’s industrial output rose just 0.5% in May, well below forecasts of a 3.5% increase, indicating lingering softness in the manufacturing sector.