Asia Markets Reflect Mixed Performance as Investors Anticipate New Year; Singapore's GDP Growth Reaches 4%

On Thursday, Asian stock markets displayed a mixed performance as many major markets reopened following the New Year's Day holiday. Investors are closely watching economic indicators ahead of the New Year.

Recent data shows that China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) for December fell to 50.5, which was lower than economists' expectations of 51.7, according to a Reuters poll. In contrast, the PMI for November stood at 51.5 and 50.3 for October.

The decline in the PMI suggests that the pace of growth in the manufacturing sector has slowed since November, with softer sales contributing to the decrease, particularly in export orders. Additionally, the official PMI for December was released at 50.1, also falling short of projections.

Mainland China's CSI 300 index dropped by 0.48%, and Hong Kong's Hang Seng Index fell by 1.75% in response to these indicators. On the other hand, South Korea's Kospi index saw a modest rise of 0.34%, while the Kosdaq gained 1.23%, benefiting from an extended trading session due to a New Year opening ceremony.

The Bank of Korea's governor, Rhee Chang-yong, emphasized the importance of flexibility in monetary policy during a New Year address, citing an unprecedented landscape of political and economic uncertainties. The central bank’s decision on interest rates is anticipated later this month after having recently implemented back-to-back cuts for the first time since 2009.

Australia's S&P/ASX 200 index increased by 0.35%, while markets in Japan remained closed on Thursday and Friday.

Investors in Asia are also analyzing Singapore's GDP data, which indicates an economic growth of 4.3% year-on-year for the fourth quarter of 2024, albeit slower than the 5.4% growth observed in the previous quarter. It is important to note that these advance GDP estimates are primarily based on initial data for the quarter and might be revised once more information is available.

For the entire year of 2024, Singapore’s economy has grown by 4%, significantly improving from the 1.1% growth recorded in 2023.

In the U.S., stock futures remained largely stable as traders prepare for the new year. All three major U.S. indexes experienced double-digit annual gains in 2024. Dow Jones Industrial Average futures were unchanged, while S&P 500 and Nasdaq 100 futures saw slight increases of 0.06% and 0.17%, respectively.

To highlight the performance of U.S. markets, the S&P 500 recorded back-to-back annual gains exceeding 20%, surging by 23.31% last year following a 24.2% rise in 2023. The Dow Jones Industrial Average rose by 12.88%, while the Nasdaq experienced a growth of 28.64%.

Asia, Markets, Growth