Investors assess China data, await Fed decision


Hong Kong skyline.

Billy HC Kwok | Bloomberg | Getty Images

Asian markets opened mixed on Monday, with Hong Kong stocks falling as investors were spooked by disappointing economic data from China, while several key markets were closed for holidays.

Hong Kong's Hang Seng Index Following worrying economic data released by China over the weekend, the market fell 0.76% after factory output, retail sales and investment data in August fell below expectations. The urban unemployment rate rose to a six-month high, while year-on-year home prices fell at the fastest pace in nine years.

Investors are also awaiting the Federal Reserve's policy meeting on Tuesday and Wednesday, where central bankers are expected to cut interest rates for the first time since 2020.

Australia's S&P/ASX 200 rose 0.44% at the open. Taiwan Weighted Index It rose a little higher.

Markets in mainland China and South Korea were closed for the Mid-Autumn Festival. Markets in Japan were closed for Respect for the Aged Day.

Typhoon Bebinca has forced hundreds of flights to be cancelled in China and is expected to hit Shanghai as the most powerful storm since 1949.

Asian investors are also awaiting key data and central bank decisions from the region.

Japan's inflation is expected to rise in August, according to a Reuters survey, indicating the Bank of Japan should take an accommodative stance when it sets its policy on Friday.

The central bank is likely to keep interest rates unchanged, while also signaling that further rate hikes could be on the way.

The Japanese yen strengthened on Monday morning to trade at 140.49 against the dollar. If the yen holds at these levels, the currency will close at its strongest level in more than a year.

China is set to set its one- and five-year loan prime rates on Friday. The one-year rate, which affects most new and outstanding loans, is currently 3.35%, while the five-year rate, which affects the pricing of mortgages, is currently 3.85%.

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