Asia report: Markets in the red, but most post full-year gains

(Sharecast News) - Asia-Pacific markets presented a mixed picture on the final trading day of 2024, influenced by holiday closures in key regions and weaker-than-expected manufacturing data from China. Stephen Innes, managing partner at SPI Asset Management, noted that US stocks were wrapping up the year on a subdued note, with a "cautious shuffle in the red" in their penultimate session overnight, leading to Asia picking up a "risk-averse baton".

"This anticlimactic close starkly contrasts the exuberance seen earlier this year," he noted.

"The rally has been overshadowed by year-end position adjustments and heightened caution, spurred by the Federal Reserve's recent move to temper expectations for interest rate cuts.

"This shift sent 10-year yields higher, unsettling a market already grappling with stretched tech valuations, hence weakness in the tech sector of late."

Most markets in the red, but post gains for the full year

In China, the Shanghai Composite fell 1.63% on Tuesday but closed the year up 13.15%, while the Shenzhen Component dropped 2.4% during the session.

Key stocks such as Zhejiang JiHua Group, Harson Trading, and Tongling Jingda each fell by about 10% on the day.

In Hong Kong, the Hang Seng Index inched up 0.09% to 20,059.95, concluding the year with an impressive 19.49% annual gain.

Leading performers on Tuesday included China Shenhua Energy, which rose 3.07%, and China Mengniu Dairy, up 3.05%.

Japanese and South Korean markets remained closed for the New Year's holidays.

Japan's Nikkei 225 finished the year up 19.85%, while South Korea's Kospi ended the year down 10.13%.

Australia's S&P/ASX 200 index declined 0.92% to 8,159.10 on Tuesday but posted a 6.97% annual gain, extending its positive streak to a second year.

Declines in mining and energy stocks, including Iperionx, down 7.56%, and Contact Energy, off 5.28%, weighed on the day's performance in Sydney.

In New Zealand, the S&P/NZX 50 dropped 1.2% but ended 2024 up 11.77%.

Property stocks such as Precinct Properties and Argosy Property underperformed on the day.

Currency markets were relatively stable, with the dollar last down 0.01% on the yen to trade at JPY 156.83, while it rose 0.12% against the Aussie to AUD 1.6094, and added 0.2% on the Kiwi, changing hands at NZD 1.7768.

Oil prices showed modest movement, with Brent crude futures steady on ICE at $74.39 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.75% to $71.52.

China's manufacturing sector shows minimal expansion

In economic news, China's manufacturing sector showed minimal expansion in December, with the purchasing managers' index (PMI) slipping to 50.1, falling short of the 50.3 forecast by analysts and barely above the threshold signaling growth.

The figure matched the marginal expansion seen in November, but highlighted persistent challenges for the world's second-largest economy.

It underscored the limited impact of Beijing's recent stimulus measures, which had so far failed to provide a significant boost to economic activity.

A reading above 50 indicates growth, while a number below that signals contraction, making December's performance a tepid conclusion to the year for China's industrial sector.

Reporting by Josh White for Sharecast.com.