Asian stocks climbed as fresh data revealed a stronger-than-expected rise in Chinese consumption at the start of the year, offering a boost to investor confidence. Meanwhile, US equity futures dipped after Treasury Secretary Scott Bessent downplayed recent market declines, calling them a necessary correction.
Markets across the Asia-Pacific region responded positively, with equities gaining in Australia, Japan, and South Korea. A key index of Chinese stocks listed in Hong Kong advanced as much as 1.3%, while the onshore CSI 300 Index showed some volatility due to lingering concerns over China’s ongoing property sector struggles. However, optimism surrounding rising consumer activity helped balance the cautious sentiment.
Oil prices extended their gains for a second consecutive session, driven by expectations that China—the world’s largest crude importer—will ramp up demand. The dollar remained stable amid these developments.
With mixed signals from China’s latest economic data, investor attention is now shifting to a crucial policy briefing set for Monday afternoon. Chinese authorities are expected to outline measures aimed at stabilising the stock and property markets, increasing wages, and supporting population growth. Strengthening consumer spending remains central to Beijing’s strategy for counteracting the impact of US trade policies, which have disrupted global supply chains and dampened Chinese export growth.
According to Charu Chanana, chief investment strategist at Saxo Markets, recent policy signals from Beijing reaffirm its commitment to boosting domestic consumption. This could broaden the rally in Chinese equities beyond the technology sector, with potential gains extending to consumer, travel, and healthcare stocks amid an improving earnings outlook.
In bond markets, US Treasuries edged higher in Asian trading, with the benchmark 10-year yield easing by one basis point to 4.30%.
On Wall Street, risk appetite appeared tempered following remarks from Bessent, who dismissed recent losses in the equities market—totaling trillions of dollars—as a natural recalibration amid the US government’s economic policy shifts. Investors are also closely monitoring central bank meetings scheduled this week, with decisions from the Bank of Japan and the Bank of England expected to shape market direction. The Federal Reserve faces a balancing act, as Chairman Jerome Powell seeks to reassure investors about economic stability while maintaining readiness to provide support if needed.
Trade tensions remain a focal point, with former President Donald Trump’s latest tariff threats keeping policymakers on edge. Analysts at Barclays Plc anticipate that the Federal Reserve’s latest projections will indicate just one rate cut this year, followed by two in the next.
European stock futures showed slight gains in Asian trading following comments from Germany’s Chancellor-in-waiting Friedrich Merz, who confirmed a budgetary agreement with the Green Party to fund defense and infrastructure projects through increased debt. This announcement provided a modest lift to the euro.
Meanwhile, gold prices stabilised after Friday’s decline, breaking a four-day winning streak as broader market sentiment fluctuated.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
