Asian Stocks Mixed After Chinese Markets Reopen

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Asian Stocks Mixed After Chinese Markets Reopen

Following a long Lunar New Year holiday, Asian stock markets exhibited mixed performance on Monday. Chinese markets reopened with mostly positive sentiment, leading to gains in Hong Kong's Hang Seng index and Bangkok's SET index. However, Hong Kong's Hang Seng index experienced a decline due to heavy selling in technology and property sectors, despite plans for property project loans announced by Chinese state banks.

In Japan, the Nikkei 225 index declined marginally, while video game giant Nintendo's shares faced a significant drop amid rumors that the successor to the Switch console would not be released this year.

Elsewhere in the region, Australia's S&P/ASX 200 edged higher, and South Korea's Kospi index gained 1.2%. The Sensex index in India also rose by 0.5%.

On Friday, the S&P 500 index on Wall Street fell from its record high, along with the Dow Jones Industrial Average and the Nasdaq composite. A report showing higher-than-expected wholesale inflation levels dampened hopes for an immediate easing of interest rates by the Federal Reserve.

Higher interest rates increase borrowing costs, potentially slowing economic growth and impacting investment prices. Despite this challenge, economists maintain optimism that the economy will remain resilient, allowing companies to sustain profit growth and support stock prices.