Global Markets Await Key Economic Decisions Amid Geopolitical Tensions

Asian stocks began the week cautiously, anticipating potential rate cuts in the U.S. and decisions from central banks in Japan and the UK. Geopolitical risks, including a foiled assassination attempt on Donald Trump, and disappointing economic data from China added to market uncertainties. Investors await key economic data and central bank meetings.

Asian stocks began the week with caution as markets brace for potential easing measures in the United States. The primary question revolves around the magnitude of the anticipated rate cut, with opinions split on the possibility of a substantial move. Central banks in Japan and the UK are also poised for meetings this week, with both expected to maintain current policies for now. Additionally, a series of crucial economic data releases in the U.S., including retail sales and industrial production, add to the market's unease.

Geopolitical concerns persist, highlighted by a second assassination attempt on Republican presidential candidate Donald Trump, according to the FBI. Holiday closures in China, Japan, South Korea, and Indonesia contributed to thin trading conditions, resulting in modest early movements. The MSCI's broad index of Asia-Pacific shares outside Japan remained nearly unchanged after a 0.8% increase last week.

Economic data from China over the weekend revealed slower industrial output growth, reaching a five-month low in August, alongside weakening retail sales and new home prices. This data strengthens the argument for further economic stimulus by the end of the year to meet growth targets. Meanwhile, futures trading indicates a growing belief in a more aggressive rate cut by the Federal Reserve.

(With inputs from agencies.)