Most Asian stocks sharply declined on Monday, as risk appetite was affected by geopolitical tensions in the Middle East. Continuous concerns about rising US interest rates also impacted the performance of Asian markets. Chinese stocks, however, performed the best during the day, bouncing back from their lowest level in over a month as Beijing pledged further support.
The Japanese index was among the worst performers today, losing 1.2% as investors continued to profit-taking near recent record highs. Data showing a rebound in core machinery orders in February, indicating improved capital expenditure, did little to boost sentiment. The release of March’s Consumer Price Index data, scheduled for later this week, remains a key focus for Japanese markets.
The Australian index lost 0.5%, despite a rebound in Chinese stocks supported by government backing. The Shanghai Shenzhen CSI 300 Index and the Shanghai Composite Index rose by 1.8% and 1.2% respectively, bouncing back from their lowest levels in a month. Main government-backed funds were seen buying shares of heavyweight Chinese banks, which were a key support for Chinese stock indices.
Chinese markets have been struggling with a set of weak economic data from the past week, with inflation and trade readings for March coming in below expectations.
