Asia-Pacific Markets Surge on Strong Japanese GDP Figures

Asia-Pacific markets surge on strong Japanese GDP figures; U.S. inflation data aligns with forecasts, boosting Wall Street.

Global Markets:

• Asian Stock Markets: Nikkei 225 up 0.75%, Shanghai Composite up 0.65%, Hang Seng down 0.33%, ASX 200 up 0.19%
• Commodities: Gold at $2,494.35 (0.6%), Silver at $28.03 (2.4%), Brent Oil at $79.97 (0.26%), WTI Oil at $77.90 (0.34%)
• Rates: U.S. 10-year yield at 3.836%, U.K. 10-year yield at 3.8291%, Germany 10-year yield at 2.182%

News & Data:

• USD Core CPI m/m: 0.2% vs 0.2% expected
• USD CPI m/m: 0.1% vs 0.2% expected
• USD CPI y/y: 2.9% vs 3.0% expected

Asia-Pacific Markets Surge on Strong Japanese GDP Figures

Markets Update:

Asia-Pacific markets experienced a positive surge on Thursday, buoyed by Japan’s better-than-anticipated GDP figures. Japan’s GDP for the second quarter grew by 0.8% quarter-on-quarter, surpassing the expected 0.5% increase and rebounding from the 0.6% contraction seen in the first quarter. However, on a year-on-year basis, Japan’s GDP fell by 0.8%, continuing a downward trend from the previous quarter’s 0.9% drop. This led to a notable rise in the Nikkei 225, which gained 0.75%, and the Topix index, which advanced by 0.74%.

In China, July retail sales grew by 2.7% year-on-year, slightly exceeding the forecast of 2.6%. Industrial output rose by 5.1%, marginally missing expectations. The urban unemployment rate increased to 5.2% from June’s 5%. The Shanghai Composite rose by 0.65%, while mainland China’s CSI 300 gained 0.79%. Conversely, Hong Kong’s Hang Seng index fell by 0.33%, and South Korea and India’s markets were closed for public holidays.

The S&P/ASX 200 climbed by 0.19% amid mixed economic indicators in Australia. The unemployment rate rose by 0.1 percentage points to 4.2%, but the participation rate exceeded expectations, reaching 67.1%.

On Wall Street, U.S. stocks showed gains after inflation data met forecasts. The Dow Jones Industrial Average increased by 0.61%, the S&P 500 gained 0.38%, marking its fifth consecutive day of gains, and the Nasdaq Composite reversed early losses to close 0.03% higher. U.S. consumer prices rose 2.9% year-on-year, matching economists’ expectations and marking the lowest annual rate since March 2021.

Upcoming Events:

• 12:30 PM GMT – USD Core Retail Sales m/m
• 12:30 PM GMT – USD Retail Sales m/m
• 12:30 PM GMT – USD Unemployment Claims

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