Asian shares displayed a mixed performance in cautious trading on Monday as investors awaited the U.S. Labor Day holiday, which will see stock exchanges closed. Market participants are also looking forward to the upcoming U.S. employment report set for release on Friday to gauge the strength of the American economy.
Japan's Nikkei 225 index gained 0.4% in morning trading, reflecting positive sentiment following a 7.4% increase in capital spending by Japanese companies in the April-June quarter. This growth signals a potential recovery for Japan's economy, with revised GDP data expected to be released next week.
Australia's S&P/ASX 200 declined 0.3%, while South Korea's Kospi edged up nearly 0.1%. Hong Kong's Hang Seng and the Shanghai Composite experienced declines amid concerns over China's growth prospects, highlighted by a drop in August manufacturing PMI.
On Wall Street, the S&P 500 closed the week with a 1% gain, contributing to a 2.3% increase for the month of August. The Dow Jones Industrial Average set its fourth all-time high, while the Nasdaq composite also ended higher.
Recent reports on the U.S. economy have been positive, with indications of slowing price rises prompting expectations of a Federal Reserve interest rate cut. Americans increased spending by 0.5% in July, accompanied by a 0.3% rise in incomes.
Bond yields showed mixed movements, with the 10-year Treasury yield rising slightly. In energy trading, benchmark U.S. crude and Brent crude prices experienced declines. Currency trading saw minor fluctuations, with the U.S. dollar slightly weakening against the Japanese yen and the euro.
Overall, global markets are navigating a mix of economic data and geopolitical factors, with investors closely monitoring developments for potential impacts on market trends.
