China Markets Face Choppy Return From Holidays as Risks Abound
- Mainland markets reopen Monday after the Golden Week holidays
- Traders to weigh global market swings against spending boom
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Chinese markets are set to reopen after the Golden Week holidays against an uncertain global market backdrop, which may temper optimism from the spending boom at home.
A lot has happened overseas while mainland markets were shut. Risk assets were hammered as renewed concern about higher-for-longer US interest rates spurred a Treasuries selloff that rippled through world markets, while the surprise attack on Israel by the Palestinian group Hamas added a fresh layer of uncertainty. On the domestic front, however, tourism revenue from the holidays surged year-on-year, adding to bets that China’s economy has likely bottomed.