Mixed Trading in Asia Markets as Investors Prepare for the New Year; Singapore's GDP Growth Hits 4%

The Asian markets had a mixed outlook on Thursday as various significant markets reopened following the New Year’s Day holiday. Investors are closely monitoring the latest economic data as they gear up for the year ahead.

China's Manufacturing Activity

Recent reports show that China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) for December stands at 50.5, falling short of economists' expectations of 51.7, as per a Reuters poll. This follows a PMI of 51.5 recorded in November and a lower figure of 50.3 in October. The decline signals a slowing pace of growth, attributed to weaker sales resulting from a drop in export orders.

Additionally, the official PMI released earlier indicated a disappointing figure of 50.1 for December, which also did not meet market expectations. In light of this data, mainland China's CSI 300 index showed a decrease of 0.48%, while Hong Kong's Hang Seng Index dropped by 1.75%.

Performance of Other Asian Markets

In contrast, South Korea recorded optimistic gains, with the Kospi index rising by 0.34% and the Kosdaq climbing 1.23%. This increase followed a delayed market opening, set aside for a New Year's ceremony. The Bank of Korea's central bank governor, Rhee Chang-yong, emphasized in a New Year's address that monetary policies will be managed flexibly in light of the rising political and economic uncertainties. The central bank, having already implemented back-to-back rate cuts for the first time since 2009, is expected to make its next interest rate announcement later this month.

Furthermore, Australia's S&P/ASX 200 increased by 0.35%, demonstrating a positive trading environment. Meanwhile, Japan's markets remained closed for both Thursday and Friday.

Singapore's Economic Growth

Investors are also analyzing Singapore's economic data, which indicates a year-on-year GDP growth of 4% for 2024. This growth rate is a significant increase from the 1.1% recorded in 2023, signaling a robust recovery. The advance estimate suggests that the economy grew by 4.3% in the fourth quarter compared to the prior year's figure, although this is a slight slowdown compared to the previous quarter's growth of 5.4%. It is essential to note that these preliminary GDP estimates are based primarily on data from the first two months of the quarter and are subject to future revisions by the Ministry of Trade and Industry.

U.S. Market Outlook

Looking towards the United States, stock futures remained largely unchanged as traders prepared for a new year of opportunities following substantial gains across major indexes. Futures tied to the Dow Jones Industrial Average were flat, while S&P 500 futures saw a slight increase of 0.06% and Nasdaq 100 futures rose by 0.17%. In 2024, the S&P 500 achieved an impressive annual gain exceeding 20%, marking a 23.31% increase, building on its previous year's rise of 24.2%. The Dow Jones Industrial Average rose by 12.88%, while the Nasdaq experienced a remarkable surge of 28.64%.

Asia, Markets, Economy