Asian Stock Diverge as Wall Street Sees Strong Rebound

Asian stock indices diverge as Wall Street sees a strong rebound; key indices and commodities show varied performance amid economic updates.

Global Markets Overview:

• Asian Stock Markets:
  • Nikkei: down 0.09%
  • Shanghai Composite: down 0.82%
  • Hang Seng: down 0.71%
  • ASX: up 0.55%
• Commodities:
  • Gold: $2394.5 (-0.17%)
  • Silver: $29.21 (-0.64%)
  • Brent Oil: $82.33 (-0.07%)
  • WTI Oil: $78.29 (-0.21%)
• Rates:
  • US 10-year yield: 4.245
  • UK 10-year yield: 4.165
  • Germany 10-year yield: 2.492

News & Data:

• China:
  • 1-year Loan Prime Rate: -1.3% vs -0.5% expected
  • 5-year Loan Prime Rate: -0.8% vs -0.5% expected

Asian Stock Diverge as Wall Street Sees Strong Rebound

Markets Update: Asia-Pacific markets experienced mixed trading on Tuesday, following Wall Street’s gains despite ongoing political uncertainties. Australia’s S&P/ASX 200 increased by 0.55%. Japan’s Nikkei 225 slightly declined by 0.09%, while the Topix index increased by 0.08%. In South Korea, the Kospi rose by 0.46%, and the Kosdaq rose by 0.48%. South Korea’s producer price index for June increased by 2.5% year-on-year, compared to a 2.3% rise in May.

Shares of Kakao, a popular messaging app, dropped 4.63% following reports of an arrest warrant issued for its founder, Brian Kim, over market manipulation allegations.

Taiwan’s Taiex surged by 2.4%, breaking a four-day losing streak, led by gains in the real estate, industrials, and tech sectors, according to LSEG data. Conversely, Hong Kong’s Hang Seng Index fell by 0.69%, while Mainland China’s CSI 300 decreased by 1%.

In early trading, India’s Nifty 50 and the BSE Sensex remained relatively unchanged. India will reveal its first budget under Prime Minister Narendra Modi’s third term. Barclays analysts expect the government to indicate policy consistency in the budget, highlighting continued fiscal consolidation with slight adjustments in spending.

Singapore’s consumer price index for June rose by 2.4% year-on-year, beating Reuters’ expectations of a 2.7% increase. This marked a slowdown from the 3.1% rise in May. Core inflation, which excludes accommodation and private transport costs, increased by 2.9% year-on-year, slightly below Reuters’ forecast of 3%.

Wall Street Update: In the U.S., the S&P 500 had its best day since June 5, as tech stocks rebounded following the index’s worst weekly loss since April. The S&P 500 climbed by 1.08% to close at 5,564.41. The Nasdaq Composite rose by 1.58% to finish at 18,007.57, and the Dow Jones Industrial Average increased by 127.91 points, or 0.32%, to close at 40,415.44.

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