The fact that China’s inflation rate has fallen below projections adds to concerns about economic growth.
While Asian stock markets began the week on a positive one, Hong Kong’s blue-chip stocks benchmark, the Hang Seng index, diverged on a negative note on Monday.
Global equity markets began the week with mixed results as central banks in the United States, the United Kingdom, and Europe prepare to publish interest rate decisions.
Risk appetites in Asian equities markets began to improve as hopes grew that the Chinese government will take actions to bolster the country’s economy in order to alleviate concerns about dwindling activity.
According to numbers released over the weekend, consumer inflation in China declined by 0.5% on a monthly and annual basis in November, falling short of forecasts.
According to analysts, China’s declining inflation is an indicator of the country’s steadily deteriorating domestic demand.
On Monday, the South Korean Kospi index rose 0.28% to 2,525 points, while China’s Shanghai composite index rose 0.7% to 2,990 points.
While the Nikkei 225 index in Japan finished the day at 32,791 points, up 1.5%, a US dollar sold for approximately 145.5 Japanese yen, up 0.4% in value.
In India, the Sensex index rose 0.1% to 69,900 points, while the Hang Seng fell 0.6% to 16,240 points.