Asian Stock Watch: Japan GDP Revised, China PMI in Focus

Asian stock markets mixed as investors evaluate economic data. Japan GDP revised, China’s PMI shows mixed signals. U.S. markets retreat on inflation data.

Global Markets Overview: Asian stock markets displayed a mixed performance today as investors carefully evaluated recent business activity and economic data. The Nikkei increased by 0.12%, the Shanghai Composite rose by 0.95%, and the Hang Seng increased slightly by 0.03%. Conversely, Australia’s ASX slipped by 0.22%.

Commodities Update: In commodities, gold increased by 0.03% to $2335.5, while silver dropped 0.44% to $29.48. Oil prices experienced gains, with Brent crude rising 0.59% to $85.73 and WTI crude climbing 0.87% to $82.21.

Interest Rates: The U.S. 10-year yield stood at 4.400%, the UK 10-year yield was 4.212%, and Germany’s 10-year yield was 2.534%.

Economic Data Highlights: The U.S. Core PCE Price Index met expectations, increasing by 0.1% month-over-month. Personal income rose by 0.5%, surpassing the expected 0.4%, while personal spending grew by 0.2%, slightly below the anticipated 0.3%. Canada’s GDP matched expectations with a 0.3% month-over-month increase.

Asian Stock Watch: Japan GDP Revised, China PMI in Focus

Markets Update: Asia-Pacific markets began the year’s second half with mixed results as investors assessed June’s business activity data from China and Japan’s business confidence readings. China’s official PMI figures indicated that the manufacturing PMI remained at 49.5, unchanged from May and still in contraction territory for the second consecutive month. However, a private survey highlighted a sharp improvement in manufacturing conditions, with the S&P Caixin PMI rising to 51.8 in June from 51.7 in May.

Japan revised its first-quarter GDP contraction to 2.9% year-on-year, up from the previously reported 1.8%. They also revised the GDP data for the third and fourth quarters of 2023 downward. Japan’s Nikkei 225 rose by 0.26% to a three-month high, while the broader Topix increased by 0.49%. Business confidence among large Japanese manufacturers improved in the second quarter, with the Bank of Japan’s Tankan survey registering at +13 compared to +11 in the first quarter. Economists surveyed by Reuters had predicted a +12 reading.

South Korea’s Kospi remained flat, but the small-cap Kosdaq advanced by 0.76%. The country’s factory activity expanded fastest since February 2022, with its June manufacturing PMI rising to 52.0 from 51.6. Mainland China’s CSI 300 edged down slightly, while Australia’s S&P/ASX 200 fell by 0.23%. Non-manufacturers’ sentiment in Japan matched market forecasts at +33 but declined from +34 in the previous quarter, marking the first decline in four years.

Hong Kong markets were closed today for a public holiday. In the U.S., all three major indexes fell overnight as traders analyzed a “near perfect” set of inflation data, according to an industry expert. The S&P 500 dropped by 0.41%, the Nasdaq Composite declined by 0.71%, and the Dow Jones Industrial Average decreased by 0.12%. Despite the declines, the S&P 500 and Nasdaq Composite hit new all-time intraday highs earlier in the session before returning.

Upcoming Events:

• 6:00 PM GMT – USD Final Manufacturing PMI
• 6:30 PM GMT – GBP Final Manufacturing PMI

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