• Monday’s quotations on Asian stock exchanges were mixed.
• Chinese stock markets closed sharply higher thanks to Beijing’s stimulus measures.
• The Nikkei fell by more than 4.80% after Ishiba won the LDP elections.

On Monday, quotations on Asian stock exchanges were mixed. Chinese stocks are benefiting from more policy measures in China, while concerns of Japan’s recent Prime Minister advocating interest rate normalization weigh on Japanese stocks.

Traders continue to respond to additional stimulus measures from the People’s Bank of China (PBoC) aimed at boosting growth in the world’s second-largest economy. Meanwhile, China’s Shanghai Composite rose 8.75% to 3,357.20. Meanwhile, the Shenzhen component rose 10.88% to 10,550 and the Hang Seng index rose 3.97% to 21,450.

Data released on Monday showed China’s NBS Purchasing Managers’ Index (PMI) rose to 49.8 in September from 49.1 in August, above the market consensus of 49.5 for the month. The non-manufacturing PMI fell to 50.0 in September, down from August’s 50.3 and an estimate of 50.4. Additionally, the Caixin Manufacturing PMI fell to 49.3 in September after 50.4 in August. Finally, the Caixin China Services PMI fell sharply to 50.3 in September from 51.6 in August.

A day after the prime minister’s election, Japan’s main indexes face a sell-off, with the Nikkei 225 falling 4.80% to 37,919, while the broad Topix index fell 3.63% to 2,641. Shigeru Ishiba said Japan’s monetary policy needs to normalize and increasing income tax.

On the Indian front, the Nifty 50 index fell 1.02% to 25,912 and the BSE Sensex 30 fell 1.12% to 84,630. The Indian rupee remained largely stable against the US dollar in the current calendar year (CY 2024 ), losing only 0.59% so far.

Chief Economic Advisor (CEA) V Anantha Nageswaran on Friday noted that the Indian economy is projected to grow at a stable rate of 6.5-7.0% in the current financial year.