Asia stocks subdued by China slowdown; all eyes on Bank of Australia meeting

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Asia stocks saw subdued trading on Monday as investors processed divergent economic signals from the region. The overall sentiment was subdued, particularly as market participants digested fresh signs of slowing momentum in China’s manufacturing sector. Markets' immediate focus is now on the Bank of Australia's policy meeting, which is scheduled to begin later in the day.

In contrast, South Korean equities surged, hitting a record high. The benchmark KOSPI climbed 1.97% to around 4,188 on Monday, extending gains for the fourth consecutive session and hitting fresh record highs, driven largely by strength in defense and shipbuilding shares.

Gold held its recent decline at around $4,000 per ounce on Monday, as expectations for further US rate cuts diminished and safe-haven demand eased following a US-China trade deal.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) market closed. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] held around 154 per dollar in holiday-thinned trade on Monday, hovering at its weakest levels in nine months

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.56% to below 3,950 while the Shenzhen Component dropped 1% to 13,250 on Monday, with mainland stocks declining for the third straight session as disappointing factory activity data dampened the outlook, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] hovered around 7.12 per dollar on Monday, following a two-session decline.

The RatingDog China General Manufacturing PMI declined to 50.6 in October [https://seekingalpha.com/news/4512722-chinas-factory-growth-cools-to-506-in-october-export-uncertainty-rises], down from September's six-month high of 51.2. This reading fell short of the market consensus forecast of 50.9.

OVER THE WEEKEND, the White House announced that China would halt new export controls on rare earths and drop investigations into US semiconductor firms as part of a deal under which Washington will pause certain tariffs and cancel a planned 100% levy on Chinese exports.

SEPARATELY, China announced Saturday that it will end a key value-added tax offset for some gold retailers, effective immediately, in a move that could reshape the domestic gold market.

Chinese President Xi Jinping announced on Saturday that Shenzhen will host the APEC Economic Leaders’ Meeting in November 2026, marking the third time China hosts the summit.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 1.19% to 25,949 in early trade at the start of November, attempting to recover from three consecutive sessions of losses, amid gains mainly from financial and property shares.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.06% trading around 83,966 in a choppy Monday morning session after falling for the previous two days, as gains in oil & gas, financial services, metals, and banking stocks offset losses in consumer durables, technology, and auto shares.

On the data front, final figures showed that India’s manufacturing sector growth was revised higher in October, supported by robust demand.

The government of India has relaxed import restrictions on stainless steel, allowing the sale of certain products made from BIS non-compliant steel until December 31, according to The Economic Times.

India’s Goods and Services Tax collections grew by 4.6% year-on-year in October 2025, indicating robust economic activity and consumer spending during the festive season.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.15% to 8,840 on Monday, marking its lowest level in over a month, as investors grew cautious ahead of the Reserve Bank of Australia’s policy decision on Tuesday. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] edged higher to around $0.654 on Monday, snapping a three-session losing streak.

Australia’s Monthly Inflation Gauge, compiled by the Melbourne Institute [https://seekingalpha.com/news/4512726-australian-monthly-inflation-eases-slightly-annual-figures-show-persistent-pressure], rose 0.3% month-on-month in October 2025, easing slightly from a 0.4% gain in the prior month. Despite the monthly cooling, annual headline inflation jumped sharply to 3.2% in Q3, up from 2.1% in the second quarter.

The S&P Global Australia Manufacturing PMI fell to 49.7 in October [https://seekingalpha.com/news/4512723-australias-factory-activity-contracts-for-first-time-in-2025-to-497-in-october], a significant drop from 51.4 in September. A reading below 50 indicates contraction.

Household spending in Australia rose 0.2% mom in September 2025, following a marginally revised flat reading in the previous month.

The seasonally adjusted number of total dwellings approved in Australia increased by 12% month-on-month to 17,019 units in September 2025.

ANZ-Indeed Australian Job Ads fell 2.2% month-on-month in October 2025, following a revised 3.5% drop in the previous month.

In the U.S. on Friday, all three major indexes ended higher [https://seekingalpha.com/news/4512334-wall-street-dow-sp500-nasdaq] led by a 10.8% surge in Amazon shares after the company said cloud revenue climbed 20% in the third quarter and beat estimates, lifting tech names broadly.

Investors now await fresh earnings from major names this week including Berkshire Hathaway, Palantir, AMD, Uber and McDonald’s.

U.S. stock futures rose on Monday as trading for November kicked off following seven straight months of gains for the tech-heavy Nasdaq Composite: Dow +0.21%; S&P 500 +0.25%; Nasdaq +0.31%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

China’s factory growth cools to 50.6 in October, export uncertainty rises [https://seekingalpha.com/news/4512722-chinas-factory-growth-cools-to-506-in-october-export-uncertainty-rises#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's factory activity contracts for first time in 2025 to 49.7 in October [https://seekingalpha.com/news/4512723-australias-factory-activity-contracts-for-first-time-in-2025-to-497-in-october#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australian monthly inflation eases slightly, annual figures show persistent pressure [https://seekingalpha.com/news/4512726-australian-monthly-inflation-eases-slightly-annual-figures-show-persistent-pressure#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's economic slowdown deepens as factory activity hits six-month low to 49.0 in October [https://seekingalpha.com/news/4512084-chinas-economic-slowdown-deepens-as-factory-activity-hits-six-month-low-to-490-in-october#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia Q3 producer inflation hits one-year high, rises by 1.0% Q/Q [https://seekingalpha.com/news/4512085-australia-q3-producer-inflation-hits-one-year-high-rises-by-10-qq#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]