JKB Financial Services Ltd.

As on : 06-Jan-2025

Market Commentary - Foreign Markets
06-Jan-2025 16:33

Chinese shares close on a sluggish end

Asian stocks ended flat to lower on Monday, though Seoul stocks rallied after a court dismissed an appeal by lawyers of Yoon Suk Yeol against an arrest warrant for the impeached president.

Japanese markets led declines due to profit taking following the Nikkei stock index's record year-end close.

Chinese and Hong Kong markets ended on a sluggish note as U.S-China trade tensions loomed, and investors looked for greater clarity on the implementation of stimulus policies.

Oil prices eased from near three-month highs in Asian trade amid concerns over sanctions and a stronger dollar after positive U.S. House Speaker election results.

Gold ticked lower ahead of the release of minutes from the Fed's last meeting due Wednesday and the December payrolls report due on Friday.

China's Shanghai Composite index slipped 0.14 percent to 3,206.92 and the onshore yuan breached a key milestone for the first time since late 2023 amid reports that the People's Bank of China will issue the largest-ever offshore yuan bonds in Hong Kong this month.

China's service sector grew at the fastest pace in seven months in December underpinned by greater business inflows, survey results from S&P Global showed on Monday.

The services Purchasing Managers' Index posted 52.2 in December, up from 51.5 in November. The score was forecast to climb to 51.7.

The survey showed that quicker services activity growth failed to offset softer manufacturing output expansion. The composite output index dropped to 51.4 in December from 52.3 in November.

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