Asian markets were mixed in early trading Tuesday, after Wall Street rebounded from a rough week and China indicated its economic recovery sped up last month.
Japan’s Nikkei 225 NIK, -0.60% fell 0.6% while Hong Kong’s Hang Seng index HSI, +0.48% rose 0.6%. The Shanghai Composite SHCOMP, +0.28% advanced 0.3% and the smaller-cap Shenzhen Composite 399106, +0.52% gained 0.5%. South Korea’s Kospi 180721, +0.63% rose 0.6% while benchmark indexes in Taiwan Y9999, +0.41% , Singapore STI, +0.68% and Indonesia JAKIDX, -1.17% were mixed. Australia’s S&P/ASX 200 XJO, -0.20% was flat.
China reported Tuesday that retail sales returned to growth in August for the first time in 2020, rising 0.5% year over year. Industrial production also rose 5.6%, up from the previous month and topping analysts’ estimates.
“The activity data is about as strong a signal one could expect and will continue to support the steady economic growth recovery,” Stephen Innes, chief global markets strategist at AxiCorp, wrote in a note. “Assuming that COVID -19 remains under control in China, it should be safe to say activities will recover further amid supportive policies paving the way for a continuing and convincing growth rebound.”
Investors are also awaiting economic projections from the U.S. Federal Reserve at its policy meeting on Wednesday.
On Monday, the Dow Jones Industrial Average DJIA, +1.18% rose 327.69 points, or 1.2%, to finish at 27,993.33, after briefly trading above the 28,000 threshold. The S&P 500 SPX, +1.27% added 42.57 points, or 1.3%, closing at 3,383.54. The Nasdaq Composite COMP, +1.87% climbed 203.11 points, or 1.7%, to end at 11,056.65, snapping a two-session losing streak.