Asian stock markets declined on Monday amid growing concerns over global economic health, following a surprise U.S. credit rating downgrade by Moody’s and mixed economic data from China.
S&P 500 futures fell 0.8% in Asian trading, dragging regional indices lower. The downgrade of the U.S.'s Aaa rating stemmed from concerns about mounting government debt and a lack of credible fiscal measures. The news dampened investor sentiment, which had already cooled after last week’s short-lived rally on easing U.S.-China tariff tensions.
Chinese markets showed mild losses despite stronger-than-expected April industrial production, with the Shanghai Composite and CSI 300 slipping 0.1% and 0.4%, respectively. The Hang Seng dropped 0.6%. However, weak retail sales and disappointing fixed asset investment highlighted persistent pressure on China’s consumer and business spending. The data pointed to deeper challenges as Beijing seeks to stabilize economic growth while high trade tariffs with the U.S. remain in place.
Other major Asian indices also declined. Japan’s Nikkei 225 fell 0.3% and the TOPIX lost 0.1%, extending declines after Friday’s weak GDP report. Investors are awaiting Japan’s April inflation data for further clues on future Bank of Japan rate moves. South Korea’s KOSPI dropped 0.7%, while Singapore’s Straits Times Index lost 0.3%.
Australia’s ASX 200 was flat ahead of Tuesday’s Reserve Bank of Australia (RBA) decision. Markets widely expect a 25-basis point rate cut amid easing inflation, though analysts anticipate a cautious outlook due to global uncertainties.
India’s Gift Nifty futures declined 0.3%, suggesting a subdued open following strong gains last week.
Investors remain on edge as signals from the world’s top economies continue to show fragility, with central bank actions and macro data under close watch this week.


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