Investors weigh Japan’s surprise GDP slump and await key export data that could signal the region’s economic direction
MARKET INSIDER – Asia-Pacific markets opened the week on an uneven footing Monday as investors looked to China’s November trade report, a data release that could shape sentiment across global equities. Economists surveyed by Reuters expect a meaningful rebound, forecasting a 3.8% rise in exports and 3% growth in imports, signaling a potential stabilization after months of fits and starts in the world’s second-largest economy.
But optimism was tempered by fresh evidence of weakening momentum in Japan. Revised government data showed the country’s economy contracted at an annualized 2.3% in the July–September quarter — worse than initial estimates and underscoring the pressure on Asia’s long-standing growth engine. The Nikkei 225 slipped modestly, while the broader Topix managed a marginal gain as traders recalibrated expectations for corporate earnings and Bank of Japan policy.
Elsewhere in the region, South Korea’s Kospi hovered near the flatline, and the tech-heavy Kosdaq climbed nearly half a percent. Australia’s ASX 200 edged lower ahead of Tuesday’s Reserve Bank of Australia rate decision, with most economists expecting the central bank to hold rates steady at 3.60% through 2026, extending one of the longest policy pauses among major economies.
Mainland Chinese and Hong Kong markets saw mild strength. The Hang Seng inched up 0.24% and the CSI 300 rose 0.43%. One standout storyline was the sharp pullback in Moore Threads, a Beijing-based GPU maker whose shares tumbled more than 5% after a staggering 400% surge on its Shanghai debut last week — a reminder of both investor enthusiasm and volatility in China’s semiconductor sector.
Global sentiment remained constructive after Wall Street closed higher Friday, pushing the S&P 500 to its fourth straight winning session and within 0.7% of its all-time high. But Asia’s cautious tone reflects a broader question hanging over markets this week: Can China’s trade recovery extend long enough to anchor regional growth?
For now, investors are waiting for the answer.
