Japan's market indexes trimmed year-to-date gains and booked losses in September following gains in five consecutive months. Confidence among manufacturing businesses slightly improved in the third quarter.
China's manufacturing activities struggled to expand for the sixth month in a row as businesses faced persistent headwinds from domestic slowdown and an uncertain export outlook.
As the LDP's leadership race tightens ahead of this Saturday's election, investors pay closer attention to likely policy differences between the two leading candidates.
Industrial profits among mainland corporations advanced 20% from a year ago in August, reviving hopes of an increase in profits in 2025. In the eight months to August, industrial profits inched higher 0.9% from a year ago.
Benchmark indexes in China and Hong Kong struggled to stay above the flatline amid worries of stretched valuations compounded by new U.S. sector tariffs covering pharmaceuticals, furniture, and trucks.
Japan's benchmark indexes struggle for the third consecutive day amid worries of stretched valuations. The June policy meeting indicated that the BoJ policymakers are set to raise rates if economic conditions warrant.
Japan's indexes struggled to advance following cautious comments from the Fed Chair, Powell. The yen hovered near 148, about 38% stronger against the U.S. dollar on the 40th anniversary of the Plaza Accord.
China's indexes turned lower amid profit-taking and receding hopes of additional monetary support from the People's Bank of China. The Hong Kong and Shenzhen exchanges are expected to operate normally as the two cities await the arrival of Typhoon Ragasa, the strongest since 2018.
Japan's indexes rebounded on Monday, tracking Friday's Wall Street gains and lifting indexes to new record highs. Japan's ruling LDP party kicks off campaigning for the leadership race.
US-China trade talks are likely to stall until the year's end after Friday's Trump-Xi call showed little progress. Investors shifted attention to the PBOC's rate decisions later this week.
The Bank of Japan held steady its short-term interest rates for the fifth consecutive meeting and announced steps to normalize monetary policy after a decade of unorthodox interventions and easing. Consumer price inflation eased for the fourth consecutive month in August.
