Asian markets start week on cautious note

November 12, 2018: Asian markets were largely flat on Monday morning following weak US trading at the end of last week and as nervousness over Chinese growth put pressure on global equities.

After early gains, Hong Kong hovered between positive and negative territory, edging up 0.2 percent by mid-morning.

Tokyo and Shanghai stocks were largely unchanged, with Tokyo trading down by 0.1 percent.

"Flagging growth in China revived global growth concerns," Stephen Innes, head of trading for Asia-Pacific at OANDA.

"Specifically, it was Friday's China factory gate inflation wobble that is weighing on global equities and commodities alike."

China's economy will be in the spotlight this week, with key monthly data expected Wednesday and stocks tumbling last week on mounting concerns of a slowdown.

Chinese ecommerce giant Alibaba took a record $30.7 billion in orders on Sunday during its annual "Singles Day" shopping frenzy.

However sales growth slowed to 27 percent this year from 39 percent growth in 2017, adding to mounting concerns over the outlook for the Asian powerhouse.

"But where we can get some comfort from this number is that Chinese consumers are slowing, not collapsing," Junheng Li, founder of JL Warren Capital LLC, told Bloomberg News.

China's banking stocks were seeing mixed performance Monday after the government gave new guidance on requirements for banks to lend to private companies. Last week bank shares dropped as investors balked at what were seen as unprecedented government demands on lenders.

The Industrial & Commercial Bank of China (ICBC) was up 0.2 percent in Hong Kong, while the China Construction Bank lost 0.1 percent.

(APP)