Asian Markets Fell on Investor Caution

 

Asia's markets kicked off the week with the most declines on Monday (Jan. 13), as investors revised the probability of US interest rate cuts after US payroll data became stronger than expected from last week. The US jobs data from last Friday signaled a strong labor market, raising expectations that the Federal Reserve may have a short-term pause in rate cuts. Goldman Sachs revised its forecast from three cuts to two cuts in 2025.

 

Japanese markets were closed for a holiday, leading to lighter trading volumes. The lower trading volume further depressed the regional sentiment.

 

China's markets led the decline, with Hong Kong's Hang Seng index dropping 1.00% and the Shanghai Composite dipping 0.25%. A stronger-than-expected trade balance in China’s December data failed to lift investor sentiment.

 

Elsewhere in Asia, South Korea’s KOSPI closed down 1.04%. As of 4:28 PM SGT., India's Nifty 50 index slid 1.31%. As of 4:13 PM SGT., Singapore’s Straits Times Index lost 0.61%. FTSE Bursa Malaysia KLCI index fell 0.98%.

 

 

The US will release the Producer Price Index on Tuesday, the Consumer Price Index on Wednesday, retail sales on Thursday, and industrial production on Friday. Also, China will release 2024 Gross Domestic Product (GDP) figures, December's industrial production data, and retail sales figures on Friday.