FX.co ★ Asian markets decline on Monday

Asian stock indexes largely declined on Monday. The only indexes that posted gains were the Shenzhen Composite and the Hang Seng Index, which increased by 0.37% and 0.26% respectively. The Shanghai Composite shed 0.08%, the S&P/ASX 200 decreased by 1.06%, the Nikkei 225 lost 2.42%, and the KOSPI dropped by 2.7%.

Asian indexes went down following an earlier fall of US indexes at the end of last week. The US dollar's upsurge against other major currencies, which has already hit new highs, put additional pressure on Asian markets.

Negative sentiments predominate in the market as the world's leading central banks tighten their monetary policy. Traders are concerned that such measures could lead to an economic downturn.

According to preliminary data, manufacturing PMI in Japan fell to 51 points in September from 51.5 in the previous month, reaching the lowest point since the beginning of 2022.

Japanese services PMI increased to 51.9 points from 49.5 in August, while the composite PMI advanced to 50.9 points from 49.4 in the previous month. Both indexes rose to a 3-year high.

On the Nikkei 225, the worst-performing stocks were SoftBank Group (-5.4%), Mitsubishi UFJ Financial (-4.9%), Honda Motor (-5%), Sony Group (-4.3%), and Toyota Motor (-3%).

Last week, analysts adjusted their forecasts for China's GDP in 2023 downwards due to the country's ongoing strict lockdown measures. This week, Chinese PMI data will be released, which will indicate how fast the Chinese economy is recovering.

Chinese stocks were mixed on Monday. Some stocks posted losses, such as Zijin Mining Group (-6.8%), PetroChina (-3.7%), and China Coal (-3.2%).

Shares of Kweichow Moutai and Great Wall Motor increased by 2.5% and 1.4% respectively.

Hong Kong relaxed its quarantine restrictions for travelers arriving to the city. These restrictions were enacted at the beginning of the COVID-19 pandemic.

On the Hang Seng Index, CNOOC lost 4.2% and CITIC dived by 5.7%, while Meituan and Tencent gained 4.9% and 4.3% respectively.

In Australia, shares of leading companies went down on Monday, with BHP Group and Rio Tinto losing 3%, and Fortescue Metals falling by 2.8%.