Asian Markets Slide; Nikkei Hits New Low

Asia-Pacific markets fell, with Japan’s Nikkei hitting a new low. Key economic data and central bank policies are under scrutiny.

Global Markets Overview:

• Asian Stock Markets: Nikkei 225 down 1.63%, Shanghai Composite down 1.07%, Hang Seng down 1.33%, ASX down 0.41%
• Commodities: Gold at $2550.35 (+0.29%), Silver at $28.90 (+1.21%), Brent Oil at $69.80 (+1.09%), WTI Oil at $66.30 (+1.08%)
• Rates: U.S. 10-year yield at 3.617%, U.K. 10-year yield at 3.822%, Germany 10-year yield at 2.148%
• Economic Data: USD NFIB Small Business Index at 91.2 vs. 93.6 expected

Markets Update:

Asia-Pacific markets saw broad declines on Wednesday, with Japan’s Nikkei 225 leading the drop. The Nikkei fell 1.6%, extending its losing streak to seven days, while the broader Topix index dropped 1.8%.

The Reuters Tankan survey in Japan revealed that business confidence among large manufacturers reached a seven-month low in September, falling to plus 4 from plus 10 in August. Non-manufacturing sentiment also declined for the third consecutive month. The news weighed heavily on investor sentiment in the region.

Asian Markets Slide; Nikkei Hits New Low

South Korea’s job market showed signs of strength, with the unemployment rate dropping to 2.4% in August, its lowest level since 1999. Despite this positive economic indicator, the South Korean Kospi index fell 0.57%, while the Kosdaq index saw a modest increase of 0.57%.

The Bank of Japan’s board member, Junko Nakagawa, indicated that the central bank may continue to raise interest rates if economic conditions align with forecasts. She stressed the importance of closely monitoring market changes following the July policy shift. In response, the Japanese yen strengthened, reaching its highest level against the U.S. dollar since January, trading at 141.68 yen per dollar.

In Taiwan, Taiwan Semiconductor Manufacturing Co. reported August revenues of 250.87 billion New Taiwan Dollars ($7.8 billion), marking a 33% increase year-on-year. Despite this strong performance, the company’s shares experienced a slight dip.

Markets in Australia also experienced losses, with the S&P/ASX 200 index down 0.4% and Hong Kong’s Hang Seng index dropping 1.3%.

In the U.S., stock markets showed mixed results. The S&P 500 rose by 0.45% and the Nasdaq increased by 0.84%, but the Dow Jones Industrial Average fell by 0.23%.

Investors are monitoring upcoming economic data releases, including the U.S. Core CPI and CPI reports scheduled for 12:30 PM GMT.

As global markets navigate a complex economic landscape, the focus remains on central bank policies and economic indicators that could influence future market movements.

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