© Portal.
Investing.com – Most Asian stocks rose, albeit modestly, on Monday as investors gathered ahead of a series of key central bank meetings this week, while Chinese shares fell on persistent signs of disinflation in the country.
Regional markets picked up positive signals from Wall Street after US stock indexes rose more than expected on Friday. The reading suggested some resilience in the world's largest economy, although traders also assessed lower chances of the Federal Reserve cutting interest rates soon.
were flat on Monday.
Japan was the best performer among its peers, rising 1.6% as it recovered from last week's sharp losses. The Bank of Japan's hawkish signals had hit local stocks, although the prospect of relatively loose monetary policy in Japan still kept investors bullish on local stocks.
Broader Asian markets edged higher, although worries about China and caution a week ago kept gains limited. While the central bank is widely expected to leave interest rates unchanged, its outlook for 2024, particularly when it plans to start cutting rates, is being closely watched.
Australia rose 0.2% while South Korea rose 0.1%. In addition to the Fed, interest rate decisions from the US Federal Reserve are also available.
Chinese stocks fall to 4-year low as disinflation continues
China's blue-chip index fell 1.3% to its weakest level since early 2019, while China and Hong Kong also posted similar declines.
Data released over the weekend showed China posted its fastest decline in three years in November, while also falling for a 14th straight month.
The readings showed that Chinese spending failed to pick up despite Beijing's ongoing liquidity measures – a trend that does not bode well for Asia's largest economy. China has now been in disinflation for two months in a row and has announced only a slight recovery in economic activity in the coming months.
The inflation data also followed several mixed economic data reports for November, sparking growing calls from investors for more stimulus from Beijing.
Chinese stocks have been the worst-performing stock markets in Asia this year, amid ongoing negative economic conditions.
Indian stocks are likely to retreat from their record highs
Futures for the Indian index are pointing to a slightly weak open on Monday, with investors expected to take further profits after the index hit a series of record highs last week.
Recent gains in Indian stocks took them past $4 trillion in total valuation and were largely driven by optimism about the world's fastest-growing major economy.
A decisive victory by the ruling BJP party in the state elections, giving it a strong showing in the 2024 general elections, also boosted optimism about Indian markets.
This week's focus now turns to key markets after the Reserve Bank warned of a possible rise in inflation by November.
Add value to your investments with our groundbreaking, AI-powered InvestingPro+ stock recommendations. Use coupon INVSPRO2024 to get a limited-time discount on our Pro and Pro+ subscription plans. Click here to learn more and don't forget to use the discount code at checkout!