China’s biggest political meeting in six years will begin this week.
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Chinese stocks extended their declines on Friday in a turbulent start to the year, despite gains in the broader Asia-Pacific region, as investors weighed policy signals from Beijing.
Mainland China’s benchmark CSI 300 index fell 1.18% to close at 3,775.16480 after a volatile session, extending a drop of 2.9% the day before. that of Hong Kong Hang Seng Index was up 0.42% in its last hour of trading.
Chinese bond yields hit record highs, with the 10-year yield falling 1.5 basis points to 1.598%, and the 30-year government bond yield falling 2.9 basis points to 1.819%. , according to LSEG data.
The People’s Bank of China reportedly plans to cut interest rates “at an appropriate time” this year, she added. The Financial Times reported citing central bank comments. The country’s 7-day repo rate is currently set at 1.5%.
In the coming year, China will increase the issuance of ultra-long-term bonds and step up efforts to boost consumption, senior officials of China’s National Development and Reform Commission told reporters on Friday. .
Officials reiterated plans to subsidize purchases of smartphones, smartwatches and tablets, while increasing job training, pensions and support for gig economy workers.
Separately, China’s Commerce Ministry has proposed imposing export restrictions on certain technologies used to make battery components and to process critical minerals like lithium and gallium, according to a report. notice issued Thursday.
Investors in Asia will continue to assess political uncertainty in South Korea, as the country’s corruption watchdog failed to arrest impeached President Yoon Suk Yeol after an hours-long standoff at the presidential residence. according to Yonhap News. Yoon’s short-lived attempt at martial law on December 3 caused political unrest in the country.
South Korean markets, however, seem to ignore the political chaos, Kospi Index up 1.79% to close at 2,441.92 and small cap Kosdaq rose 2.79% to 705.76. SK Hynix saw its shares jump 6.25%, as the chipmaker announced. reveal its intention to position itself as a “full stack AI memory provider” at the Consumer Electronics Show 2025 next week.
Australia S&P/ASX200 rose 0.60% to 8,250.50.
Japanese markets remained closed for a public holiday.
All three major U.S. indexes ended the first trading session of the new year lower, extending the weakness of late 2024, signaling that markets may not see a “Santa rally” this year.
Investors were hoping for a “Santa’s Rally” which extends over the last five trading days of a year and the first two trading days of the following January. During that period, the S&P 500 Index gained an average of 1.3%, while nearly 80% of the time it finished higher, according to Dow Jones market data dating back to 1950.
Overnight in the United States, the blue chips Dow Jones Industrial Average lost 151.95 points, or 0.36%, to end at 42,392.27, while the S&P500 fell 0.22% to 5,868.55 and heavily tech Nasdaq Composite lost 0.16% to 19,280.79.
It was the fifth straight session in the red for the S&P 500 and Nasdaq, their longest losing streak since April. Big tech stocks weighed on the market, with Apple falling 2.6% and Tesla falling 6% due to lower annual shipments.
— CNBC’s Evelyn Cheng, Jesse Pound and Christina Cheddar Berk contributed to this report.
