[MARKET ANALYSIS] Asia-Pac stocks mostly declined amid several recent bearish themes

APAC Stocks: Mostly Negative

• Asia-Pac stocks were pressured amid several recent bearish themes, including the partial US government shutdown and surprise contraction in Chinese official PMIs over the weekend, while sentiment is also not helped by the recent historic collapse in precious metals and with tech-related weakness after reports that NVIDIA's plan to invest USD 100bln OpenAI stalled.

ASX 200: -1.2%

• Retreated with underperformance in the mining sector after the recent tumble in metal prices, including last Friday's biggest intraday drop for gold in four decades, while sentiment is also not helped by the wide consensus for a rate hike by the RBA on Tuesday.

Nikkei 225: +0.2%

• Bucked the trend at the open with the index boosted by a weaker currency and with the Takaichi trade in play after a poll showed that the ruling LDP is likely on course for a landslide victory at the snap election this upcoming Sunday.

Hang Seng & Shanghai Comp: Hang Seng -2.0% / Shanghai Comp -1.0%

• Chinese markets are pressured after disappointing PMI data over the weekend which showed official manufacturing and non-manufacturing PMI unexpectedly slipped into contraction territory, while the private sector RatingDog manufacturing PMI data matched estimates and continued to show an expansion, but failed to inspire risk sentiment.

US Equity Futures: Lower

• Retreated at the reopen on several bearish factors and with the Emini Nasdaq 100 leading the declines on reports that NVIDIA's USD 100bln plan to invest in OpenAI stalled, while Bitcoin prices also slumped over the weekend with prices approaching closer to the USD 75k level.

European Equity Futures -0.8%

• Indicate a negative cash market open with Euro Stoxx 50 futures down 0.8% after the cash market closed with gains of 1.0% on Friday.

Asia-Pac stocks are mostly down, influenced by significant bearish sentiments stemming from the US government shutdown and disappointing PMI data from China. The broader risk sentiment is pressured by the recent sharp declines in precious metals and notable tech weaknesses, particularly surrounding NVIDIA's stalled investment in OpenAI; this suggests potential volatility affecting global markets and could influence central bank policies regarding interest rates and economic forecasts.