Shares in Asia were mixed on Monday following reports of a slowdown in China's factory output and a struggling property market. U.S. futures dipped, and oil prices also fell.
In Tokyo, shares fell by 1.9% to 38,070.40, while Seoul's Kospi declined by 0.5% to 2,744.63. Australia's S&P/ASX 200 gave up 0.2% to 7,712.90. Hong Kong's Hang Seng rose by 0.1% to 17,960.09, but the Shanghai Composite index shed 0.6% to 3,015.95.
China reported a 5.6% decline in factory output in May, below analysts' expectations and a slowdown from the previous month's 6.7%. Retail sales also rose by just 4.1% in the first five months of the year. Property investments in China fell by 10% in May compared to a year earlier, with home prices in major cities dropping by 3.2%. Property sales plummeted by 30.5% year-on-year, indicating ongoing challenges in the sector despite efforts to revive it.
Most Southeast Asian markets were closed for holidays, with Thailand's SET losing 1.2%. In the U.S., stocks hovered around record levels, with the S&P 500 down slightly at 5,431.60. The Dow Jones Industrial Average dipped to 38,589.16, while the Nasdaq composite set a new record at 17,688.88.
European stocks declined following elections that have raised uncertainty in the region. Far-right party wins have increased pressure on France's president, sparking concerns about the EU's future, fiscal plans, and France's debt repayment ability. France's CAC 40 fell by 2.7%, while Germany's DAX lost 1.4%.
U.S. stocks have been setting records amid hopes of easing inflation leading to potential interest rate cuts by the Federal Reserve. Technology stocks, in particular, have been performing well. Adobe saw a 14.5% jump in its stock after reporting stronger-than-expected profits. Broadcom rose by 3.3% following better-than-expected profits and a stock split. Nvidia gained 1.8% as its market value surpassed $3 trillion.
A preliminary report from the University of Michigan indicated that U.S. consumer sentiment did not improve as expected this month. High mortgage rates have impacted the housing market, with the Federal Reserve maintaining high-interest rates to curb inflation.
In early trading, U.S. benchmark crude oil lost 30 cents to $77.75 per barrel, while Brent crude fell by 30 cents to $82.32 per barrel. The U.S. dollar rose against the Japanese yen and slipped against the euro.
