From Investing.com:

Asian stocks saw a flat-to-low start to the new year due to weak economic data from China and a powerful earthquake in Japan. Most regional markets were also set for a correction after strong December gains amid bets the Fed will cut rates early in 2024. Japan’s index fell 0.4%.

China’s bluechip index fell 1.1% and traded at near a five-year low due to weak official PMI data showing sustained economic weakness. The Shanghai Composite index lost 0.3% and Hong Kong’s Hang Seng index slid 1.7% on losses in mainland stocks.

The Chinese economy shrank more than expected in December, with an average reading for 2023 indicating contraction. The Caixin/Markit Manufacturing PMI also remained in sight of contraction in December.

Weakness in offshore demand for Chinese goods led to largely modest growth in manufacturing activity, dampening Chinese economic recovery in 2023 and spurring investors to remain wary of Chinese markets.

Asian markets moved in a flat-to-low range, with Australia’s ASX 200 adding 0.4% and South Korea’s KOSPI falling 0.1%. India’s Nifty index futures indicated a weak open, with Indian stocks due for profit-taking after stellar 2023 gains.

Markets were awaiting more cues on U.S. interest rate cuts, with expectations of early interest rate cuts by the Fed remaining largely in play, and traders pricing in over a 70% chance for a 25 basis point rate cut in March.

Expectations of early interest rate cuts by the Fed drove strong gains in Wall Street through December, which in turn spilled over into Asian markets. But whether this rally can sustain will be largely dependent on U.S. economic data.



Read more: Asian stocks mark muted start to 2024 on fresh China weakness By Investing.com