Asian markets are mixed as hopes for a Fed rate cut rise; the Nikkei gains, while the Hang Seng slides. Investors await key U.S. GDP and inflation data.
Asian markets traded mixed today on Thursday as investors digested the growing likelihood of a U.S. Federal Reserve rate cut in September, while keeping a cautious eye on upcoming U.S. economic data.
Global Market Overview
- Nikkei: +0.60%
- Shanghai Composite: -0.63%
- Hang Seng: -1.36%
- ASX: +0.14%
Commodities were broadly stable, with gold at $3,445.82 (+0.37%) and silver at $38.86 (+0.42%). Oil prices, however, continued to soften: Brent crude slipped 0.52% to $66.86, while WTI crude fell 0.95% to $63.54.
Bond yields remained elevated, with the U.S. 10-year at 4.219%, UK 10-year at 4.735%, and Germany 10-year at 2.694%.
The CME FedWatch Tool now shows an 87% probability of a quarter-point rate cut at the Fed’s September meeting, fueling optimism across equity markets. However, analysts warn that potential U.S. policy interventions could push long-term borrowing costs higher.
Traders are awaiting key U.S. data releases, including second-quarter GDP and inflation figures, both due later today, along with unemployment claims.
Asian Markets Mixed with Focus on Federal Reserve
In Japan, the Nikkei gained 0.60% to 42,731, supported by strong performances in SoftBank, automakers, and financials.
In China, sentiment weakened, with the Shanghai Composite down 0.63% amid concerns over slower domestic growth. Hong Kong’s Hang Seng Index dropped 1.36%, while Singapore and South Korea posted modest gains.
Australia’s ASX 200 edged up 0.14%, though the broader market saw mixed moves.
- Miners and energy stocks declined, with Rio Tinto and BHP down nearly 1%, and oil names like Woodside and Beach Energy lower.
- Financials outperformed, with Commonwealth Bank and NAB advancing.
- Corporate earnings drove sharp moves:
- IDP Education surged 32% on strong results
- Qantas jumped 9% on record profit
- Eagers Automotive rose 14% on EV demand
- Ramsay Healthcare dropped 12%, Telix Pharmaceuticals plunged 19% on regulatory concerns
Overnight, Wall Street closed modestly higher, with the S&P 500 hitting a new record high. Gains were led by tech and financial stocks, bolstered by expectations of Fed easing.
Upcoming Key Events
- 12:30 PM GMT – U.S. Preliminary GDP (Q2)
- 12:30 PM GMT – U.S. Weekly Unemployment Claims
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