Asia-Pacific stocks rebound following broad sell-off, eyes on key economic datac data

Japan (NKY:IND) +2.04%. The Reuters Tankan sentiment index for manufacturers in Japan jumped to +12 in December 2023 from +6 in November, improving for the second straight month.

China (SHCOMP) -0.09%. Investors now look ahead to Chinese trade figures and the latest inflation report later this week for further guidance.

Markets also look ahead to a Politburo meeting and the annual Central Economic Work Conference where Chinese authorities are expected to discuss policy plans and set economic targets for 2024.

The offshore yuan has come under renewed pressure in the previous session after Moody’s downgraded its outlook on China’s government credit rating from stable to negative, citing economic uncertainties and property market risks.

Hong Kong (HSI) +0.72%.

India (SENSEX) +0.47%. Traders anticipated the RBI’s monetary policy decision on Thursday, with the market expecting the central bank to hold interest rate at 6.5% for the fifth consecutive meeting.

Australia (AS51) +1.65%. Australian Q3 GDP +0.2% q/q (vs. expected +0.4%).

The Ai Group Industry Index for the Australian manufacturing sector declined by 4.4 points to -25.3 in November 2023.

In the U.S. on Tuesday, all three major indexes ended mixed, as investors digested new economic data. Job openings in the US came below expectations and reached the lowest level since March 2021, a sign the labour market is cooling. Meanwhile, the ISM Services PMI topped forecasts and continued to point to a resilient services sector.

U.S. stock futures rose on Wednesday after the major averages ended mixed during Tuesday’s regular session: Dow +0.13%; S&P 500 +0.26%; Nasdaq +0.38%.

Market participants now await US jobs data due Friday that could alter expectations that the Federal Reserve will cut interest rates early next year.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

More on Asia