Asia markets slip as China’s ‘Two Sessions’ meeting gets underway; gold sets new record

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March 5, 2024
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BEIJING, CHINA – MARCH 4: Hosts pour tea for Chinese President Xi Jinping, centre left, and other leaders at the opening session of the CPPCC, or Chinese Peoples Political Consultative Conference, at the Great Hall of the People on March 4, 2024 in Beijing, China. China’s annual political gathering known as the Two Sessions will convene leaders and lawmakers to set the government’s agenda for domestic economic and social development for the year. (Photo by Kevin Frayer/Getty Images)

Kevin Frayer | Getty Images News | Getty Images

Asia-Pacific markets fell as China’s “Two Sessions” meeting got under way, with investors watching out for the details of its economic plans after the country projected a GDP growth target of “around 5%” for 2024.

The country also expects the inflation rate to rise to “around 3%.”

The CSI 300 index fell 0.6%. Beijing also said it would boost its defense spending by 7.2% in 2024.

Separately, the Caixin services purchasing managers’ index reading for China will be released later in the day.

South Korea’s revised GDP figures showed its economy grew 0.6% for the fourth quarter of 2023, while Japan’s capital city of Tokyo’s inflation rebounded from a 22-month low in February.

Japan’s Nikkei 225 fell below the 40,000 mark after crossing that milestone on Monday, dropping 0.6%, while the Topix was down 0.06%.

South Korea’s Kospi also slipped 0.13%, and the small-cap Kosdaq shed 0.92%.

Hong Kong’s Hang Seng index fell 1.4%.

The Taiwan weighted index edged 0.2% to hit a record high.

In Australia, the S&P/ASX 200 was trading nearly flat.

On the commodities front, gold futures settled at a record high on Monday as traders bet the Federal Reserve will start cutting interest rates in the second half of the year. Futures reached $2,126.30, before falling slightly to $2,115.38 per ounce currently.

Overnight in the U.S., all three major indexes retreated with the S&P 500 and Nasdaq Composite off all-time highs, despite technology stocks tied to the artificial intelligence boom seeing a rally.

The S&P 500 shed 0.12%, while the Nasdaq Composite slipped 0.41%. The Dow Jones Industrial Average lost 0.25%.

— CNBC’s Clement Tan, Sarah Min and Alex Harring contributed to this report