Asian stock markets fell significantly on Monday, influenced by market anticipation of the U.S. Federal Reserve’s decision on interest rate cuts, along with economic data from China, which raised investor concerns about the state of the global economy.
Chinese markets experienced notable volatility after retail sales data came in below expectations, heightening worries about weak consumer spending in the world’s second-largest economy. On a positive note, industrial production showed growth in line with November expectations, supported by economic stimulus measures announced by the Chinese government.
In Japan, the Nikkei 225 index remained nearly unchanged, reflecting market stability as the Bank of Japan’s central meeting approaches. The bank is expected to maintain its current monetary policy, given its ongoing review of global economic developments and wage growth prospects in the country.
Globally, markets are awaiting the Federal Reserve meeting, with expectations pointing to a potential 25 basis point interest rate cut. However, the long-term outlook remains uncertain due to persistent inflationary pressures that may influence the Fed’s monetary policy trajectory.
Asian markets are under pressure amid unclear signals regarding central bank actions. Investors are eagerly anticipating clear guidance from the Federal Reserve this week to shape the next phase of global market movements.
