Asia Markets Mixed as China PMI Data, India Ties, and U.S. Tariff Ruling Shape Investor Sentiment

Asian stock markets closed mixed on Monday as investors weighed fresh economic data out of China, developments in India-China relations, and a major U.S. court ruling on tariffs. China’s August RatingDog manufacturing index showed modest improvement at 50.5, signaling expansion after July’s contraction of 49.5. However, the official manufacturing PMI released Sunday still reflected contraction at 49.4, highlighting ongoing uncertainty in the world’s second-largest economy.

Hong Kong stocks led regional gains, with the Hang Seng Index surging 2.17% to 25,617.42, boosted by a sharp 18.6% rally in Alibaba shares. Pharmaceutical and biotech firms, including CSPC Pharmaceutical Group and WuXi Biologics, also posted strong advances. On the mainland, the CSI 300 inched up 0.6% in choppy trade to close at 4,523.71, reflecting cautious optimism.

Elsewhere, sentiment was weaker. Japan’s Nikkei 225 fell 1.24% to 42,188.79, weighed down by losses in semiconductor makers such as Advantest, Disco Corp, and Socionext. South Korea’s Kospi slid 1.35% to 3,142.93, while the small-cap Kosdaq dropped 1.49% to 785. In Australia, the S&P/ASX 200 declined 0.51% to 8,927.70, reflecting broader risk aversion across Asia-Pacific markets.

India bucked the regional downtrend, with the Nifty 50 climbing 0.66% and the BSE Sensex advancing 0.6%. Investor confidence was supported by signals of improved diplomatic ties between New Delhi and Beijing. At the Shanghai Cooperation Organization summit, leaders from both nations emphasized partnership over rivalry, while Chinese President Xi Jinping called for stronger cooperation in artificial intelligence and rejected “Cold War mentality.”

Adding to global market drivers, a U.S. federal appeals court ruled that most of former President Donald Trump’s “reciprocal tariffs” were illegal, saying he had exceeded his authority in imposing broad levies on imports. While U.S. markets were closed Monday for Labor Day, Wall Street ended last week lower, with the S&P 500 slipping 0.64% and the Nasdaq Composite dropping 1.15%, despite both indexes securing multiple consecutive months of gains.

Source: cnbc