A man was observed walking along The Bund in Shanghai during the passage of Typhoon Bebinca on September 16, 2024. This marks the most severe storm to hit Shanghai in over 70 years, according to state media reports. The typhoon’s impact resulted in flight cancellations and highway closures as it pummeled the city with intense winds and heavy rains.
Asia-Pacific markets showed mostly higher trends on Monday as investors analyzed China’s recent economic data and anticipated the Federal Reserve’s next monetary policy decision. Hong Kong’s Hang Seng index advanced by 0.13% towards the final hour of trading, recovering in a volatile session.
China released troubling economic data over the weekend for the month of August, with factory output, retail sales, and investment figures falling short of expectations. Furthermore, the urban jobless rate climbed to a six-month peak, and year-on-year home prices experienced their steepest decline in nine years.
The Federal Reserve is scheduled to meet on Tuesday and Wednesday, with expectations that central bankers will reduce rates for the first time since 2020.
Australia’s S&P/ASX 200 increased by 0.27% to close at 8,122.60. Meanwhile, Taiwan’s Weighted Index saw a rise of 0.42%, ending at 21,850.08. Markets in mainland China and South Korea remained closed due to the Mid-Autumn festival, while Japan’s markets were shut in observance of Respect for the Aged Day.
Typhoon Bebinca has led to the cancellation of numerous flights across China, with Shanghai anticipated to be affected by the most powerful storm since 1949. Investors in Asia are also awaiting significant economic data and central bank decisions within the region.
Japan is projected to see an increase in inflation for August, according to a Reuters poll, which could support the Bank of Japan’s potential decision to maintain a stringent monetary policy during its meeting on Friday. The central bank is expected to keep interest rates steady while indicating the possibility of future rate hikes.
The Japanese yen strengthened on Monday morning, trading at 140.49 against the US dollar. Should the yen maintain these levels, it will conclude at its strongest position in over a year.
China is set to determine its one- and five-year loan prime rates on Friday. The current one-year rate, which impacts most new and outstanding loans, stands at 3.35%, while the five-year rate, affecting mortgage pricing, is at 3.85%.
