Concerns about the slowdown in the Chinese economy and inflation in Japan have undermined investor confidence in the Australian stock market.
Gains were limited after data showed Chinese factories cut production from a surge of 14.1 percent in March to 9.8 percent in April.
China had been one of the leaders in the economic recovery after the COVID-19 pandemic.
Steelmakers’ demand for Australian iron ore exports recently pushed commodity trade to over US $ 260 per tonne.
Any slowdown could greatly affect miners’ profits.
China’s retail sales have largely missed expectations, helping the ASX indexes ease during trading.
The benchmark S & P / ASX200 closed up 9.4 points, or 0.13%, at 7,023.6 on Monday.
The All Ordinaries closed up 16.4 points, or 0.23%, at 7,255.8 points.
China’s economic data is not the only set that may have troubled investors.
The Japanese producer price index for April showed higher inflation than expected.
âEven a perennially low growth country like Japan is starting to see inflation,â said CEO of Deep Data Analytics, Mathan Somasundaram.
“This inflation can spread to the United States, because these producers are exporting to the United States.”
Investors, especially those in the United States, have worried about inflation this year, with economies recovering quickly after long lockdowns.
This despite assurances from US and Australian central banks that rate hikes will not occur this year.
On the ASX, information technology gained the most, 1.16 percent.
Accounting software provider Xero rose 5.56 percent to $ 118.75.
Energy shares came next, rising 1.05 percent.
Fuel suppliers Ampol and Viva Energy will keep refineries in Brisbane and Geelong after the federal government pledged to fund fuel production in Australia.
The companies said refineries will stay online at least until mid-2027 as long as about $ 2.3 billion in funding is provided.
Refineries are the only two remaining in Australia. Competition from Asia has prompted fuel manufacturers to stop production and import the goods.
Shares of Ampol rose 6.09 percent to $ 27.51.
Viva shares rose 7.04 percent to $ 2.13.
Crown Resorts rejected the takeover bid from US private equity firm Blackstone, saying the proposal “undervalues” Crown.
Blackstone had raised its offer to $ 8.2 billion, or $ 12.35 per share.
Crown is still considering a merger proposal from his rival Star.
Meanwhile, royal commissions to the Crown continue in Victoria and Western Australia.
Stocks were 0.84% ââbetter at $ 13.15.
Agribusiness Elders recorded a 40 percent increase in profits in the first half of the year and increased its interim payment.
Crop protection and animal health products generated an after-tax net profit of $ 68.2 million.
Shareholders will earn a fully franked dividend of 20 cents per share.
The shares were down 3.43 percent to $ 11.81.
There have been big gains for gold miners after the price of the precious metal rises.
Northern Star rose 6.55% to $ 11.22.
The evolution gained 5.35% to $ 5.12.
Among the mining giants, Fortescue was the best and rose 1.36% to $ 23.10.
In banking, the Commonwealth was the only one of the top four. The shares rose 1.25 percent to $ 97.79.
NAB saw the biggest drop and lost 0.65% to $ 26.05.
On Tuesday, the Reserve Bank will release the minutes of its May meeting. The central bank maintained its record cash rate of 0.1%.
RBA Governor Philip Lowe said the council will not raise rates until inflation is between two and three percent. Mr. Lowe doesn’t expect this until 2024.
The Australian dollar was buying 77.62 US cents at 1,727 AEST, compared to 77.31 US cents at Friday’s close.
* The benchmark S & P / ASX200 closed up 9.4 points, or 0.13%, at 7,023.6 on Monday.
* The All Ordinaries closed up 16.4 points, or 0.23%, at 7,255.8 points.
* At 1,727 AEST, the SPI200 Futures Index was down four points, or 0.06 percent, to 7,015.
An Australian dollar buys:
* 77.62 cents US, compared to 77.31 cents on Friday
* 84.73 Japanese yen, from 84.65 yen
* 63.92 euro cents, from 63.90 cents
* 55.00 UK pence, from 55.03 pence
* 107.49 cents NZ, from 107.69 cents.