Asian Markets Mainly Dropped Amid Slower Growth in Member States

 

Asian markets largely fell on Thursday (Jan. 2) as weaker-than-expected China's manufacturing data and thin trading volumes weighed on investor sentiment. Trading volumes were still insufficient as Japan, the major market, remained closed for the New Year holiday. The US market sank because most stocks failed to gain a Santa Rally, further pulling down the performance of Asian equities.

 

In China, markets collectively slumped, with the CSI 300 sliding 2.91% and the Shanghai Composite Index declining 2.66% after private PMI data showed slower growth in manufacturing for December. The figures demonstrate a weaker-than-expected expansion in manufacturing, suggesting previous stimulus measures may be losing their effectiveness. Markets anticipated details on Beijing’s stimulus measures for 2025, which are expected to enhance fiscal spending to support growth. Hong Kong’s Hang Seng index also closed down 2.18%, led by a plunge in Sun Art Retail (HK: 6808) after Alibaba $BABA announced its exit from the company by selling its majority stake for $1.6 billion.

 

South Korea’s KOSPI dipped 0.02% as the country coped with political turmoil, including the impeachment and legal charges against former President Yoon Suk Yeol.

 

Singapore's Straits Times Index has risen after GDP data revealed 0.1% growth in Q4, 2024, well below the anticipated 2%. While the financial sector showed resilience, manufacturing faced pressure from weak export demand, particularly in electronics.

 

As of press time, the Straits Times Index rises 0.24%. Malaysia’s FTSE KLCI index falls 0.70%.