The Asian trading session on Monday witnessed a mixed response from the traders. Stock market experts believed that the intimidated trading session could be a response to Japanese and Chinese stock markets, as both Tokyo and Shanghai were not in action due to a public holiday ahead of the Golden Week. Japanese stock markets will reopen on Tuesday, whilst the trade in Mainland China will remain closed until Thursday.
The ASX/200 Index of Australia finished the trading session with a surge of 0.5 %, whereas the Hang Seng Index of Hong Kong remained unchanged for most part of the Asian trading session. Stocks of China Eastern Airlines slipped by 4 % after the data for the first quarter of the company revealed a loss of CNY132.4 million. On the other hand, ZTE, Chinese telecom giant, posted a rise of 3.5 % after a strong growth result in the first quarter. In Australia, the major four banks posted a good growth rate in the first quarter report. Outpacing others, Westpac Banking Group rallied by 1.6 %, followed by National Australia Bank and Commonwealth Bank of Australia, Australia and New Zealand Banking Group, that gained 1.4 %, 1 %, and 0.5 %, in that order.
The economic data released on Friday signified a less than expected growth in the U.S. economy’s first quarter report. This lowered the traders’ interest in investing in riskier assets to a great extent.
According to the reports released by the Commerce Department, the U.S. gross domestic product saw a hike of 2.5 % during a period of three months into March. However, the financial experts had expected to see a surge of at least 3.0 %. Many analysts even fear that the Federal Reserve might respond to the weak data by abiding with the loose monetary policy for indefinite period.
Now the investors are eagerly waiting for the policy statement to be released by the U.S. central bank on Wednesday, as it will give out the potential monetary easing program to be put in place by the central bank. Moreover, market players will also keep a close watch on the end result of the policy meeting of the European Central Bank that would be held on Thursday, even as most investors are anticipating a rate cut. The U.S. nonfarm payrolls report is also expected to come out on Friday.