Dec 18, 2023: As the penultimate week of 2023 kicks off, the Asia-Pacific markets opened mostly lower, except for South Korean shares, which saw a surge driven by gains in the defense sector.
Last week, most Asia-Pacific markets rallied after the U.S. Federal Reserve decided to maintain rates and unveiled plans for rate cuts in 2024 and 2025.
The Bank of Japan’s final meeting of the year is anticipated. ING, a Dutch bank, expects the BOJ to uphold its major policy settings, anticipating a potential softening in the overall tone about future policy during the press conference and statement.
Economists polled by Reuters also anticipate the BOJ to maintain its benchmark interest rate at -0.1%. In the coming days, China is set to release its loan prime rates, while Japan is expected to reveal inflation data later in the week.
Australia’s S&P/ASX 200 closed 0.22% lower, marking the end of a six-day winning streak.
Japan’s Nikkei 225 dropped by 0.64%, concluding at 32,758.98, alongside the Topix, which fell 0.66% to 2,316.86.
South Korea’s Kospi managed to reverse early declines and closed 0.13% higher at 2,566.86. Additionally, the small-cap Kosdaq saw a significant rise, climbing 1.51% to end at 850.96.
Within South Korea, shares of defense companies observed a notable surge. Korea Aerospace Industries and Hyundai Rotem each witnessed approximately a 1% increase, while Hanhwa Aerospace experienced a slight dip.
Hong Kong’s Hang Seng index plunged around 1% during its final hour of trading, while the mainland Chinese CSI 300 declined by 0.36%, extending a four-day losing streak and hitting fresh four-year lows.