Global Markets Mixed as U.S. Politics and China Data Drive Trade
Global markets entered the final day of September with investors displaying a mix of optimism, caution, and shifting expectations. In Asia, markets were split between resilience and hesitation due to macroeconomic challenges and opportunities for growth. Meanwhile, key politicians in Washington, including President Donald Trump and leaders from both parties, are set to influence the future of the U.S. government.
Hong Kong's Hang Seng Index rose nearly 1%, driven by a rebound in property developers and technology giants, despite mixed Chinese economic data. The Hang Seng's gain was a stark contrast to the KOSPI in South Korea, which fell about 0.2% due to mild selling pressure in semiconductor names and concerns about domestic spending.
In Europe, the STOXX 600 opened slightly weaker, down about 0.2%, as investors remained concerned about U.S. political gridlock. Crude oil prices extended Monday's weakness, with Brent crude hovering below $68 per barrel and West Texas Intermediate (WTI) trading in the low $63 range, due to anticipated increases in OPEC+ production quotas and the restart of exports from Kurdistan.
Gold prices rose slightly as investors sought safety amid the backdrop of fiscal and economic uncertainty, with the U.S. dollar softening modestly and Treasury yields holding steady. The Nikkei 225 in Tokyo drifted slightly lower, closing down around 0.2%, as traders were reluctant to take large positions ahead of key U.S. government budget deadlines.
China's official manufacturing PMI remained near the threshold between contraction and expansion, while the non-manufacturing index slipped slightly, reflecting softer momentum in services. The ASX 200 in Sydney fell modestly after the Reserve Bank of Australia held rates steady but reinforced a hawkish message.
As the month draws to a close, investors worldwide are keeping a close eye on U.S. political developments and their potential impact on global stock markets. Meanwhile, economic data from key regions like China continues to influence market sentiment, with investors seeking safety in gold amidst uncertainty.
