Asian stock markets took a downturn on Monday as investors adjusted their expectations following stronger-than-expected U.S. labor data. This development reduced the likelihood of immediate Federal Reserve rate cuts, placing pressure on regional indices.

Key Developments

• Hong Kong & China: The Hang Seng Index slumped, with China's CSI 300 and Shanghai Composite indices also falling. Positive trade data showing an increase in December's trade balance failed to lift investor sentiment.
• Australia: The S&P/ASX 200 declined 1.4%, but Insignia Financial Ltd rose nearly 3% on news of an improved buyout offer from Bain Capital.
• South Korea: Political unrest contributed to a 1% fall in the KOSPI Index. President Yoon Suk Yeol faces heightened scrutiny amid impeachment proceedings.
• Southeast Asia: The Philippines' PSEi Composite dropped over 1%, and Singapore's Straits Times Index lost 0.3%.
• India: Nifty 50 futures indicated a substantial drop at market opening, reflecting broader regional caution.

U.S. Economic Data Drives Global Sentiment

Stronger-than-expected U.S. job growth in December, coupled with a declining unemployment rate, has heightened expectations that the Federal Reserve will maintain its current interest rates in the near term. Major financial institutions like Goldman Sachs have revised their outlooks, anticipating fewer rate cuts in 2025.

Upcoming Economic Events

The upcoming week features pivotal global economic releases, including inflation data, which will likely influence market trends.

Utilize FMP's Economic Calendar API

For real-time updates on global economic events, including inflation data, interest rate decisions, and employment figures, refer to the Economic Calendar API.

For sector-specific data to evaluate market trends, explore the Sector P/E Ratio API.