Chinese Equities Decline Post Retail Sales Disappointment – Asia Market Wrap

Ahead of Eurozone PMI data, which will be used to assess the health of the region’s economy, the euro slightly strengthened against the dollar. As investors awaited several important central bank decisions this week, including the Fed’s, the dollar index drifted lower.

Benchmarks in Australia and Japan also declined, while MSCI’s Asian equities indicator fell for a second day. While a measure of Asian currencies fell to a two-week low, regional declines were led by consumer discretionary stocks and materials. As traders prepared for the Fed’s policy announcement, US equities futures slightly increased in value. Bitcoin surged to a new high.

Although China’s retail sales rose 3% over the previous year, this was less than the 5% growth economists were expecting. Beijing promised to increase demand but did not provide specifics on fiscal stimulus, which caused the country’s markets to already plummet on Friday.

Korean markets fell after opening higher following the impeachment of President Yoon Suk Yeol on Saturday. The country’s Constitutional Court has begun studying the case, and investigators are allegedly planning to question him this week over his surprise martial law declaration.

The gloomy tone in Asian markets came as investors prepared for the final full week of trading this year, which includes a series of central bank meetings with the Fed, Bank of Japan, and Bank of England. Traders may begin to profit from this year’s over 20% surge in global stocks.