Asia markets mixed as investors assess China's economic data; US-China Madrid talks in focus

[stock market data]

Asia stocks trade mixed on Monday, as investors assess disappointing China's economic data that showed both factory output and retail sales underperformed expectations.

Separately, Nepal will hold an election on March 5, 2026, after President Ramchandra Paudel dissolved parliament in response to a week of deadly unrest. By Saturday, calm was returning to Kathmandu, as shops reopened and traffic resumed following the lifting of emergency restrictions.

Traders remained cautious ahead of the US Federal Reserve’s monetary policy decision later this week.

Silver traded above $42 per ounce on Monday, staying close to 14-year highs. Gold hovered around $2,640 per ounce on Monday, near record highs.

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] strengthened to around 147.5 per dollar on Monday, recovering part of last week’s losses, as markets turned their focus to the Bank of Japan’s policy meeting.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) fell 0.13% to around 3,863 while the Shenzhen Component gained 0.9% to 13,040 on Monday, 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] steadied to around 7.12 per dollar on Monday, halting the previous session's losses, as investors monitored US-China talks and digested weaker-than-expected domestic economic data.

Meanwhile, fresh Chinese data underscored a fragile outlook [https://seekingalpha.com/news/4494707-chinas-industrial-output-and-retail-sales-miss-expectations-in-august-jobless-rate-ticks-up], with retail sales up just 3.4% in August, the slowest in eight months, and industrial output growth easing to 5.2%, its weakest in a year. Fixed-asset investment rose only 0.5% in January–August, well below forecasts, while the jobless rate climbed to a six-month high of 5.3%.

China’s new home prices across 70 cities dropped 2.5% year-on-year in August 2025, easing from a 2.8% drop in the previous month.

Mexican President Claudia Sheinbaum stated that officials will meet with Chinese representatives this week to discuss Mexico’s planned tariffs, emphasizing they are not coercive.

China has unveiled a two-year work plan to stabilize growth in the auto sector, targeting sales of approximately 32.3 million vehicles in 2025 — up around 3% year-on-year, according to Xinhua.

On the geopolitical front, US and Chinese officials began talks in Madrid on Sunday to address key national security, trade and economic issues, including TikTok’s divestment deadline and planned US tariffs.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 0.29% to 26,480 in early Monday trade, extending gains into a second session.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) fell 0.14% at 81,882 in morning trade on Monday, following gains in the previous five sessions. Strength in the auto, realty, and banking sectors helped offset declines in healthcare, technology, and pharmaceuticals.

India’s market regulator SEBI has unveiled measures to ease foreign investor access and support large IPOs amid heavy outflows this year. Foreign investors have pulled USD 11.7 billion from equities and debt in 2025, pressured by U.S. tariffs, weak earnings, and high valuations, Reuters said.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) fell 0.21% to 8,814 on Monday, reversing gains from the previous session, as notable losses in banking and gold stocks weighed on the index. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] rose to around $0.66 on Monday, extending gains from the previous week.

Investor focus is shifting toward the upcoming employment report and scheduled speeches from RBA officials, which could offer further insight into the central bank’s policy trajectory.

In the U.S. on Friday, all three major indexes ended mixed [https://seekingalpha.com/news/4494424-sp500-nasdaq-composite-dow-jones-news-stock-market] with the S&P 500 finishing just below the flatline, the Dow Jones slipping 273 points, and the Nasdaq 100 hitting fresh highs.

U.S. stock futures were steady on Monday as investors awaited this week’s pivotal Federal Reserve meeting: Dow +0.06%; S&P 500 +0.07%; Nasdaq +0.09%.

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 industrial output and retail sales miss expectations in August; jobless rate ticks up [https://seekingalpha.com/news/4494707-chinas-industrial-output-and-retail-sales-miss-expectations-in-august-jobless-rate-ticks-up#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan’s industrial production falls 1.2% in July amid trade uncertainty; Japan and U.S. reaffirm G7 currency policy [https://seekingalpha.com/news/4494284-japans-industrial-production-falls-12-in-july-amid-trade-uncertainty-japan-and-us-reaffirm-g7-currency-policy#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan's producer prices accelerate in August, up 2.7% Y/Y [https://seekingalpha.com/news/4493937-japans-producer-prices-accelerate-in-august-up-27-yy#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

China's consumer prices fall by 0.4% in August, producer prices decline for 35th straight month [https://seekingalpha.com/news/4493575-chinas-consumer-prices-fall-by-04-in-august-producer-prices-decline-for-35th-straight-month#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

China posts higher-than-expected trade surplus despite weakening exports [https://seekingalpha.com/news/4492921-china-posts-higher-than-expected-trade-surplus-despite-weakening-exports#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]