Easy Trading Tips – Asian stock markets were mostly flat on Monday, with Australian equities leading regional losses following disappointing earnings from Westpac, which weighed heavily on financial stocks. Broader gains in the region remained modest as investors awaited updates on U.S.-China trade developments.
Public holidays kept major markets like Japan, China, Hong Kong, and South Korea closed, resulting in lighter-than-usual trading activity across the region.
Meanwhile, U.S. stock index futures dipped during Asia hours, reflecting caution ahead of a critical Federal Reserve meeting set to begin later this week.
Investor focus is also on China’s upcoming economic data releases, especially April’s trade figures, which could offer insight into the ongoing impact of U.S. tariffs on the Chinese economy.
Westpac Earnings Miss Hits Australian Markets
Australia’s benchmark S&P/ASX 200 declined 0.7% on Monday, dragged down by a 1.6% fall in the financials sub-index. Westpac Banking Corporation (ASX:WBC), the country’s second-largest mortgage lender, reported a 1% drop in half-year net profit, citing tighter lending margins that offset loan book growth.
The bank also flagged increased uncertainty in its outlook due to ongoing global trade tensions and the effects of U.S. tariff policies.
Shares of Westpac slipped over 3% in early trade, contributing to the broader decline in the financial sector.
Over the weekend, the Australian Labor Party won re-election, securing a second term amid concerns over rising housing prices and ongoing volatility in global trade dynamics driven by the U.S.
Markets Eye Trade Progress Between U.S. and China
China said last Friday it was open to resuming trade discussions with the United States, but stressed that negotiations must be rooted in mutual respect and the removal of unilateral tariffs.
Reports indicate the U.S. has also reached out to China to initiate fresh trade talks, slightly easing investor fears of a prolonged trade standoff.
However, markets remained in wait-and-see mode, looking for more concrete signs of de-escalation and official commitments from both sides.
Elsewhere in Asia, Singapore’s Straits Times Index slipped 0.1%. India’s Nifty 50 futures also fell 0.1%, amid lingering geopolitical tensions with Pakistan.
The Philippines’ PSEi dipped 0.3%, while Malaysia’s KLCI edged up 0.2%. Indonesia’s Jakarta Composite Index posted a 0.4% gain.
Key Chinese Economic Reports on Deck
Traders are closely watching for several high-impact Chinese data releases this week. April’s Caixin services PMI is due Tuesday, followed by trade balance and consumer inflation figures on Friday.
Economists at ING warned of a potential sharp decline in Chinese exports to the U.S., predicting a double-digit year-on-year drop in both exports and imports due to the ongoing trade rift.