The Hong Kong Stock Exchange (HKEX) has introduced a new scheme that aims to connect capital markets in Hong Kong and mainland China. This move comes as Asia-Pacific markets experienced mixed trading on the first trading day of the new year.
Monday’s official data showed that China’s manufacturing PMI contracted further in December 2023, indicating a deepening contraction in its manufacturing sector. This raised concerns about the need for additional policy support to revive the country’s economy. As a result, China’s CSI 300 index opened 0.64% lower, while Hong Kong’s Hang Seng index also shed 0.58%.
Meanwhile, Japan was grappling with the aftermath of a powerful earthquake that struck its central region on New Year’s Day. With nearly 100,000 people ordered to evacuate and at least one reported fatality, Japan’s Nikkei 225 wrapped up 2023 as Asia’s top-performing market with gains of over 28%.
In other parts of the Asia-Pacific region, Australia’s S&P/ASX 200 rose 0.4%, reaching over two-year highs, while South Korea’s Kospi inched 0.1% higher and the small-cap Kosdaq rose 0.56%. Additionally, the region is expecting private factory activity surveys from S&P Global for China, Australia, and South Korea, as well as fourth-quarter gross domestic product readings from Singapore.
Looking ahead, U.S. stock futures were trading flat in overnight trading as the market gears up for the new year. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were all hovering around the flatline as markets remained closed on New Year’s Day.
Overall, the start of the new year has brought a mix of economic data and market performance in the Asia-Pacific region, setting the stage for potential developments and trends in the coming days and weeks. CNBC’s Yun Li contributed to this report.