Asia-Pacific markets traded mixed on Monday as investors awaited private data on China’s factory activity for January, while also digesting fresh signals from the Bank of Japan and ongoing volatility in commodities.
By 11:30 am AEDT (12:30 am GMT), Australia’s S&P/ASX 200 was down 0.4%. Japan’s Nikkei 225 rose 1.6%, while South Korea’s KOSPI 200 fell 0.9%.
In Japan, policymakers debated rising price pressures linked to the weak yen at their January meeting, according to a summary of opinions released on Monday. Some members warned of the risk of falling behind in responding to inflation.
"If overseas interest rate environments change this year, there is a risk that the bank may unintentionally fall behind the curve," one member was quoted as saying.
In Australia, the S&P Global Manufacturing PMI was slightly revised down to 52.3 in January 2026 from a preliminary reading of 52.4, though still above December’s final figure of 51.6.
The result marked the fastest expansion in factory activity since August, as output and new orders increased at a stronger pace, supported by foreign demand.
Additionally, China’s manufacturing sector continued to strengthen at the start of 2026, as output and new orders increased, prompting firms to boost hiring and purchasing activity.
The RatingDog China General Manufacturing PMI rising to 50.3 in January, in line with market expectations and signalling that the sector maintained its expansionary trend.
Global cues remained cautious after a weaker session on Wall Street on Friday. The Dow Jones Industrial Average fell 0.4%, the S&P 500 closed 0.4% lower, and the Nasdaq Composite dropped 0.9%, with technology stocks leading losses.
Commodity markets continued to see sharp swings. Brent crude slipped 0.4% on Friday to settle at US$69.32 per barrel. Precious metals extended heavy declines, with spot gold down 8.8% at US$4,895.44 per ounce after retreating from recent record highs. Silver plunged 26.8% to US$84.43 per ounce.
In mainland China, the Shanghai Composite fell 1% to 4,117.9 on Friday, while the CSI 300 also declined 1% to 4,706.3.
Hong Kong’s Hang Seng Index dropped 2.1% to 27,387.1. India’s BSE Sensex lost 1.9% to close at 80,722.9.
European markets ended last week higher. The UK’s FTSE 100 gained 0.5% to 10,223.5, Germany’s DAX rose 0.9% to 24,538.8, and France’s CAC 40 added 0.7% to 8,126.5.
