Market Focus: Asian Indices Climb While U.S. Tech Stocks Decline

Asian indices climb, while U.S. tech stocks decline. Japan’s Nikkei and China’s Shanghai Composite see significant gains, buoyed by economic data. Meanwhile, Nvidia and other giants face losses. Get the latest updates on global market movements.

Global Markets:

• Asian Stock Markets: Nikkei 225 up 1.59%, Shanghai Composite up 2.08%, Hang Seng Index up 2.09%, ASX 200 up 1.76%
• Commodities: Gold at $2,465.35 (up 0.57%), Silver at $28.78 (up 0.65%), Brent Oil at $79.53 (up 1.87%), WTI Oil at $76.29 (up 2.28%)
• Rates: U.S. 10-year yield at 4.152%, U.K. 10-year yield at 4.043%, Germany 10-year yield at 2.330%

News & Data:

• (USD) C.B. Consumer Confidence: 100.3 vs 99.7 expected
• (USD) JOLTS Job Openings: 8.18M vs 8.02M expected

Market Focus: Asian Indices Climb While U.S. Tech Stocks Decline

Markets Update:

Asian-Pacific markets saw significant gains on Wednesday, buoyed by positive investor sentiment and recent economic data from China. Japan’s Nikkei 225 rebounded from early losses to a 1.5% increase following a surprising interest rate hike by the Bank of Japan. The central bank raised its benchmark interest rate to 0.25%, marking the first increase above 0.1% since December 2008. While many anticipated the bank would maintain its current rate, the move signaled growing confidence in the Japanese economy.

In China, business activity data revealed a slight contraction in factory output. The manufacturing PMI for July came in at 49.4, marginally down from June’s 49.5 but above the 49.3 forecast by a Reuters poll. Despite the minor decline, the data helped lift market sentiment, with the Shanghai Composite rising 2.08% and the CSI 300 gaining nearly 2%.

Australia’s second-quarter inflation figures showed a 1% rise from the previous quarter and a 3.8% year-on-year increase. June’s inflation rate held steady at 3.8%, meeting expectations and cooling from May’s 4%. This subdued inflation might prompt the Reserve Bank of Australia to consider rate cuts or halt further hikes. The ASX 200 rose by 1.70%, while the Hang Seng Index led the region with a 2.09% gain.

In South Korea, the Kospi climbed 0.58%, driven by a strong performance from Samsung Electronics, which reported a staggering 1,458.2% year-on-year increase in second-quarter operating profit. Despite this, the Kosdaq, which includes many small-cap stocks, fell by 0.78%.

U.S. markets, however, were mixed. The S&P 500 fell by 0.5% as significant technology stocks faced declines. Nvidia saw a sharp 7% drop, while Microsoft, Amazon, Netflix, and Meta Platforms also experienced losses. The Nasdaq Composite dropped 1.28%, while the Dow Jones Industrial Average rose by 0.5%, showing resilience amid tech sector woes.

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