Official data released Monday revealed that China’s industrial profits grew slower in November, as raw material producers faced lower commodity prices.
The National Bureau of Statistics reported that industrial profits increased 9.0 percent year over year in November, compared to a 24.6 percent growth in October. China’s industrial profit increased 38.0 percent year over year from January to November.
According to the statistics office, falling commodity prices weighed on profit rises for raw material producers last month but helped boost profits for downstream equipment and consumer goods firms.
Because of a continued recovery in production and higher output prices, consumer goods makers had a faster profit gain in November. In November, equipment manufacturers’ profits rose 0.8 percent year over year, reversing a year-over-year decrease.
In holiday-thinned trade on Monday, Asian stock markets were generally down with U.S. crude, as investor confidence was pulled down by anxiety over the economic impact of the Omicron coronavirus type.
Over the weekend, China recorded the largest daily increase in local COVID-19 cases in 21 months, as infections more than doubled in Xian, the country’s newest COVID hotspot. As a result, the Nikkei in Japan sank 0.20 percent, while the Kospi in South Korea fell 0.11 percent.
U.S. West Texas Intermediate futures lost 59 cents to $73.20 a barrel in the petroleum market. The contract did not trade because of the U.S. market holiday on Friday.
On the other hand, Brent crude gained 26 cents to $76.40 a barrel, reversing a 71 cent drop on Friday.
Mainland Chinese stocks, on the other hand, were uneven, with Shanghai’s benchmark down 0.37 percent while a blue-chip index rose 0.05 percent. Australia, Hong Kong, and the United Kingdom are among the markets closed for the holidays on Monday.
The S&P 500 is expected to increase 0.1 percent when it reopens, according to Emini futures. The dollar index was essentially unchanged at 96.116, at the bottom of the range from 95.544 to the 16-month high of 96.938 achieved on Nov. 24.