Asia-Pacific markets trade advance on Monday to begin a holiday-shortened trading week, tracking a rally on Wall Street Friday following softer-than-expected US PCE inflation data, while the US government shutdown was effectively averted over the weekend. On the business front, Honda, Nissan, and Mitsubishi have informed Japan’s industry ministry that they have entered into merger talks, Kyodo News said. Shares of Honda climbed 2.1% while Nissan shares were marginally lower. Japan ( NKY:IND ) rose +1.22% to 38,976 in early deals on Monday, bouncing back from the previous session's losses. The Japanese yen fell past 156 per dollar on Monday, trading close to a five-month low and raising the possibility of intervention by Japanese authorities. China ( SHCOMP ) rose +0.03% to 3,379, while the Shenzhen Component edged up 0.2% to 10,667 on Monday, as investors awaited the People's Bank of China's decision on the One-Year Medium-Term Lending Facility rate later this week. Hong Kong ( HSI ) rose +0.73% to 19,783 during the Monday morning session, breaking a two-session losing streak amid strength mainly from the financials and property sectors. Meantime, Hong Kong's current account surplus surged to a record high of HKD 120.8 billion in Q3 of 2024. In other news, mainland investors reportedly snapped up a record amount of Hong Kong stocks as they ramped up exposure to risk assets in the city amid a weak yuan. India ( SENSEX ) rose +1.01% to 78,679 in morning trade on Monday, ending losses from the prior five sessions, mainly boosted by gains from banking sectors, financial services, and metals. Traders welcomed the minutes of the Reserve Bank of India's December monetary policy meeting last Friday, indicating an interest rate cut in February. Australia ( AS51 ) rose +1.67% to 8,128 in early trading on Monday, rebounding from its lowest level in over three months in the previous session. Singapore’s annual inflation rate rose to 1.6% in November 2024 from October's 3-1/2 year-low of 1.4%, though it remained below market expectations of 1.8%. In the U.S., on Friday, all three major indexes ended higher where cooler-than-expected inflation data eased concerns about the Fed's fewer rate cuts in 2025. Meanwhile, investor sentiment improved after Congress passed spending legislation on Saturday, averting a US government shutdown. U.S. stock futures rise on Monday after Washington avoided a year-end shutdown Saturday and kicked off future spending decisions into Donald Trump’s presidency: Dow +0.41% ; S&P 500 +0.59% ; Nasdaq +0.79% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: People's Bank of China keeps key lending rates steady for second straight month, as expected Japan’s Nov headline inflation rate rises to three-month high of 2.9%; core inflation tops forecast Bank of Japan keeps policy rate unchanged at 0.25%, as widely expected Japan's Nov export growth accelerates to three-month high, while imports unexpectedly fall China's Nov retail sales slows as stimulus impact fades; unemployment rate held steady
