APAC markets mixed, Hang Seng index hit lowest

As the year’s final three months get underway, shares in the Asia-Pacific region were mixed on Monday.

After hitting its lowest points since October 2011, the Hang Seng index in Hong Kong was down 0.97 percent in the last hour of trading, according to Refinitiv Eikon data. The S&P/ASX 200 index in Australia gave up early gains and finished 0.27 percent lower at 6,456.90.

The Topix index increased by 0.63 percent to 1,847.58 while the Nikkei 225 in Japan increased by 1.07 percent to 26,215.79. MSCI’s largest index of shares outside of Japan from Asia-Pacific fell 0.8 percent. Once the news of a potential OPEC+ production cut became public, Brent crude futures and West Texas Intermediate futures both increased.

Australia’s central bank will make its interest rate decision later this week, while numerous Asian nations will provide inflation figures. Due to the Golden Week holiday, all markets in China and South Korea are closed. The Reserve Bank of Australia is anticipated to increase its benchmark interest rate by 50 basis points to 2.85 percent, according to a recent survey of economists.

According to minutes from its meeting on September 6, when it increased its interest rate by 50 basis points, RBA’s board members stated that the case for a slower pace of rate increases was growing. To “convey the view of RBA nearing the end of upsized hikes,” analysts at Nomura expect the central bank to boost rates by 40 basis points.

The probability of a 25-basis-point increase is higher, according to economists at Commonwealth Bank Australia than a 50-basis-point increase. On news that the British government would abandon plans to eliminate the top rate of income tax, the British pound gained on Monday morning.

Just after 7 a.m. London time, the pound rose 0.8 percent against the dollar to trade at about $1.1250, returning it to the value it had on Sept. 23 before Finance Minister Kwasi Kwarteng announced a number of sharply criticised tax cuts.

According to ANZ analysts, there is a “significant chance of a cut” of up to 1 million barrels per day before an OPEC+ meeting on October 5. That action is probably going to be taken “to counteract the excessive market bearishness.” However, the letter continued, any output reductions below 500,000 barrels per day will be “shrugged off by the market.”

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