Asian stocks fall, Chinese shares drop on weak factory data, global uncertainty impacts markets

From Investing.com: 2025-01-01 22:19:48

Most Asian stocks were lower on Thursday following a subdued year-end performance on Wall Street. Chinese stocks fell sharply after data showed slower-than-anticipated growth in manufacturing activity. U.S. stock index futures were also lower in Asian trade after a disappointing end to 2024.
China’s Shanghai Composite fell by 1.3% and the CSI 300 index declined by 0.9%. Private PMI data indicated weaker growth in December, raising concerns about the impact of recent stimulus measures. Markets await clarity on Beijing’s plans for further stimulus in the coming year.
Singapore shares remained flat after Q4 GDP data revealed minimal growth due to sluggish export demand and slowing growth in China. Despite this, the economy grew by over 4% in 2024. The financial sector remained resilient, but manufacturing faced challenges from weakening overseas demand.
Most Asian stock indexes saw gains in 2024, but are now facing downward pressures due to global uncertainty. Incoming U.S. President Donald Trump’s threats of additional tariffs on China could trigger a trade war. The Federal Reserve’s signals of fewer rate cuts in 2025 further dampen the outlook for Asian markets.
Malaysia’s index fell by 0.4%, while the Philippines lost 0.6%. Australia’s index inched 0.4% higher, but India’s indicated a negative open. South Korea’s index remained largely unchanged amidst ongoing political unrest, stemming from President Yoon Suk Yeol’s impeachment and suspension in December.



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