Asia stocks tepid as China PMI disappoints; KOSPI hits fresh peak, RBA on tap

Investing.com-- Most Asian stocks were subdued on Monday as investors digested fresh signs of slowing momentum in China’s manufacturing sector, while South Korean equities surged to a record high, driven by strong gains in major chipmakers.

Markets’ focus was squarely on the Bank of Australia’s policy meeting starting later in the day.

Some regional markets drew support from an upbeat finish on Wall Street last month. U.S. stock futures also edged higher in Asian trading hours as of 02:58 GMT.

China manufacturing PMI misses forecast

China’s private RatingDog manufacturing purchasing managers’ index (PMI) slipped to 50.6 in October from 51.2 the previous month, missing market forecasts of 50.7.

The data signaled that factory activity expanded only modestly, and reinforced concerns that the world’s second-largest economy remains under pressure from sluggish demand at home and abroad.

China’s blue chip Shanghai Shenzhen CSI 300 fell 0.4% on Monday, while the Shanghai Composite index was largely muted.

Hong Kong’s Hang Seng index gained 0.5%.

Japanese markets were closed for a public holiday.

Elsewhere, Singapore’s Straits Times Index gained 0.5%, while futures for India’s Nifty 50 ticked higher.

KOSPI hits fresh record high on strong exports, tech gains

South Korea stood out as a regional bright spot after government data released on Saturday showed exports rose 3.6% in October from a year earlier, beating expectations for a slight decline.

Semiconductor shipments jumped 25.4%, underscoring resilient global demand.

The KOSPI jumped over 2% to a fresh peak of 4198.97 points, led by strong gains in chipmakers.

SK Hynix (KS:000660) shares surged more than 7%, extending last week’s rally after posting record quarterly profits, while Samsung Electronics (KS:005930) climbed 2%.

RBA rate decision awaited; shares muted

The Reserve Bank of Australia (RBA) will begin a two-day policy meeting on Monday, where the central bank is widely expected to hold its cash rate at 3.6% on Tuesday, amid signs of persistent inflationary pressures.

Data last week showed Australia’s consumer price index rose 1.3% in the September quarter and 3.2% from a year earlier, exceeding forecasts and edging above the RBA’s 2–3% target range.

Core inflation also picked up, tempering hopes that rate cuts might come early next year and prompting economists to predict a longer period of policy restraint.

Australia’s S&P/ASX 200 was largely unchanged on Monday.

Shares in Australia’s Westpac Banking Corp (ASX:WBC) rose over 2% after the lender reported a slight fall in annual profit for the year ended September 30, but still above analyst estimates.