Hong Kong stocks fall as investors digest China economic data, await Fed rate ruling

Asian markets opened mixed on Monday, with Hong Kong stocks falling as investors weighed weak economic data from China, while several key markets were closed for the holiday.

of Hong Kong Hang Seng Index The open fell 0.76%, after China released worrisome economic data over the weekend, with August factory output, retail sales and investment numbers missing expectations. The urban unemployment rate rose to a six-month high while year-over-year home prices fell at the fastest pace in nine years.

Investors also await the Federal Reserve's policy meeting on Tuesday and Wednesday where central bankers are expected to cut interest rates for the first time since 2020.

Australia's S&P/ASX 200 opened 0.44% higher. D Taiwan Weighted Index Edge up slightly.

Markets in mainland China and South Korea were closed for the Mid-Autumn Festival. Markets in Japan were closed for Old People's Day.

Typhoon Bebinka has led to the cancellation of hundreds of flights in China and Shanghai is expected to be hit by the strongest storm since 1949.

Asian investors are also awaiting key data and central bank decisions in the region.

Japanese inflation is expected to edge higher in August, according to a Reuters poll, supporting the case for the Bank of Japan as the board sets its policy on Friday.

The central bank is expected to keep rates unchanged and indicates that further rate hikes are likely.

The Japanese yen strengthened to trade at 140.49 against the greenback on Monday morning. If the yen holds these levels, the currency will close at its strongest level in more than a year.

China is set to set its key one- and five-year lending rates on Friday. The one-year rate, which affects most new and outstanding loans, is currently at 3.35%, while the five-year rate, which affects mortgage rates, is currently at 3.85%.