Beijing, China – As China’s annual ‘Two Sessions’ meeting unfolded, Asia-Pacific markets experienced a mixed performance as investors eagerly awaited details of the nation’s economic plans.
China Unveils Economic Target and Plans
China set a modest GDP growth target of “around 5%” for 2024, aiming to strike a balance between economic recovery and financial stability. Inflation is projected to rise to “around 3%,” reflecting global price pressures. The country also announced a 7.2% increase in defense spending.
Asian Markets React
Investors were cautiously optimistic as China kicked off its key annual policy meeting. The CSI 300 index dipped 0.6%, while Tokyo’s inflation rate rebounded from a 22-month low in February. South Korea’s revised GDP figures revealed a 0.6% growth for the fourth quarter of 2023.
Nikkei Below 40,000
Japan’s Nikkei 225 index fell below the 40,000 mark it crossed earlier this week. The Topix index also declined by 0.06%. South Korea’s Kospi and Kosdaq lost 0.13% and 0.92%, respectively. Hong Kong’s Hang Seng index shed 1.4%.
Taiwan and Australia
In a positive development, Taiwan’s weighted index edged up 0.2% to a record high. Australia’s S&P/ASX 200 index remained largely flat.
Gold Reaches Record High
Gold futures soared to a record high on Monday, fueled by expectations of interest rate cuts by the Federal Reserve in the latter half of the year.
US Markets Retreat
Overnight in the United States, all three major indexes retreated, with the S&P 500 and Nasdaq Composite moving away from their record highs. The S&P 500 lost 0.12%, while the Nasdaq Composite declined 0.41%. Technology stocks linked to the booming artificial intelligence industry offered some support, but overall sentiment was subdued.
Investors’ Outlook
As the ‘Two Sessions’ meeting progresses, investors will continue to monitor China’s economic plans closely. The government’s policies and projections will significantly impact business decisions and market sentiment in the region.
Data sourced from: cnbc.com
