Japan’s Nikkei 225 index reached a new high on Monday, signaling a positive start to the week for traders returning from a long weekend. Meanwhile, China’s markets experienced a setback, ending a nine-day winning streak. The Nikkei closed 0.4% higher at 39,233.71, surpassing its previous closing record of 39,098.68. This achievement comes after the index broke its 1989 all-time high of 38,915.87 last Thursday. The broader Topix also saw gains, rising 0.5% to 2,673.62.
In contrast, China’s stock rally came to a halt, with the CSI 300 index falling 1.04% to close at 3,453.36. This interruption in the market’s upward trajectory raises questions about the sustainability of the recent gains.
Meanwhile, South Korea’s financial regulatory body announced new measures aimed at improving corporate governance. Taking inspiration from Japan’s playbook, these measures aim to boost the undervalued markets in South Korea and address the “Korea discount.” However, these efforts did not have an immediate impact on the main index. The Kospi ended the day 0.8% lower at 2,647.08, while the small-cap Kosdaq fell 0.1% to 867.40.
Investors are eagerly awaiting a series of economic data releases scheduled for this week. Of particular interest are China’s manufacturing purchasing managers’ index and the U.S. personal consumption expenditures price index data, which serves as the Federal Reserve’s preferred inflation gauge. These reports will provide valuable insights into the state of the global economy and may influence market sentiment.
On Friday, Wall Street’s main indexes reached record highs, closing the week on a positive note. The S&P 500 inched higher by 0.03% to close at 5,088.8, breaking above the 5,100 mark for the first time earlier in the session. The Dow Jones Industrial Average also reached a fresh record closing high, adding 0.16% by the close. The Nasdaq Composite, however, closed 0.28% lower but had achieved a new all-time high earlier in the session.
Overall, the global markets are displaying mixed performance, with Japan’s Nikkei 225 index leading the way with its fresh high. China’s markets experienced a temporary setback, while South Korea’s efforts to improve corporate governance have yet to yield significant results. Investors are closely monitoring upcoming economic data releases for further insights into market trends.
