- Wall Street rebounds with S&P 500 gaining 2.1%, marking its best day since November
- China’s industrial output rises 5.9% year-on-year, while retail sales grow 4%
- Property investment in China declines 9.8%, signaling ongoing real estate challenges
- Tech stocks and AI-driven companies lead recovery efforts
- U.S. consumer sentiment dips for third consecutive month amid policy uncertainties
Asian equity markets opened the week on a high note, fueled by Wall Street’s dramatic Friday rally and stronger-than-anticipated economic indicators from China. The S&P 500’s 2.1% surge—its largest single-day gain since the 2023 correction—helped offset concerns about a prolonged market slump. Meanwhile, Beijing reported a 5.9% increase in industrial production for January-February, surpassing analyst forecasts and easing fears of a manufacturing slowdown.
Hong Kong’s Hang Seng Index jumped 1.3%, reflecting optimism around China’s retail sales growth of 4%. However, the property sector remains a weak spot, with real estate investment plunging 9.8% year-on-year. Tokyo’s Nikkei 225 rose 1.3%, while Seoul’s Kospi outperformed regional peers with a 1.7% leap. Analysts attribute the rally to reduced fears of a U.S. government shutdown and temporary relief in trade tensions.
Despite these gains, underlying risks persist. The University of Michigan’s preliminary March survey revealed declining consumer confidence, driven by anxieties over future economic policies. This sentiment echoes challenges in China, where officials are pushing consumer spending initiatives to counterbalance property market woes. Structural reforms, including tax incentives for electronics and automotive purchases, aim to stimulate domestic demand.
Regional Spotlight: Hong Kong’s Policy-Driven Rally
Hong Kong’s market surge highlights the region’s sensitivity to Beijing’s policy shifts. With Chinese regulators pledging support for consumer tech and green energy sectors, investors are repositioning into growth stocks. Local authorities plan to unveil tax breaks for home appliance upgrades this quarter—a move expected to bolster retail giants like Alibaba and JD.com.
Tech stocks globally showed resilience, with Nvidia climbing 5.3% amid renewed AI sector interest. Apple gained 1.8%, recovering partially from earlier losses tied to iPhone sales concerns. However, experts warn that tech valuations remain vulnerable to interest rate fluctuations and geopolitical developments.
Oil prices edged higher early Monday, with Brent crude reaching $71.07 per barrel. Currency markets saw minimal movement, as the yen held steady at 148.93 against the dollar. Investors now await the Federal Reserve’s policy meeting for clues on inflation management and rate cut timelines.
