Markets Diverge After U.S. Losses and Data Shifts Focus

Asia-Pacific markets diverge as U.S. losses influence trading. The focus is on Japan’s trade data and the RBI’s rate decision. Gold and oil prices see modest changes.

Global Markets:

• Asian Stock Markets: Nikkei down 0.84%, Shanghai Composite up 0.07%, Hang Seng down 0.1%, ASX down 0.23%
• Commodities: Gold at $2434.35 (0.10%), Silver at $26.8 (-0.54%), Brent Oil at $77.93 (-0.47%), WTI Oil at $74.9 (-0.35%)
• Rates: US 10-year yield at 3.903%, UK 10-year yield at 3.952%, Germany 10-year yield at 2.225%

News & Data:

• (USD) Crude Oil Inventories: -3.7M vs -1.6M expected
• (CAD) Ivey PMI: 57.6 vs 60.0 expected

Markets Diverge After U.S. Losses and Data Shifts Focus

Markets Update:

Asia-Pacific markets showed mixed performance on Thursday, reflecting a cautious mood following declines in U.S. stock indices. The Dow Jones Industrial Average fell 0.60%, the S&P 500 declined by 0.77%, and the Nasdaq Composite, known for its tech-heavy listings, dropped 1.05%. These declines came after early gains, fueled by strong performances from Nvidia and other tech giants, were eroded later in the session.

Market volatility increased earlier in the week due to the Bank of Japan’s decision to raise interest rates to their highest level since 2008. This move, coupled with weaker-than-expected U.S. employment figures, heightened investor uncertainty.

In Asia, investors focused on Japan’s trade data and the Reserve Bank of India’s (RBI) interest rate decision. The RBI maintained its key interest rate at 6.5% for the ninth consecutive meeting, aligning with economist forecasts. Meanwhile, Japan’s current account surplus for June registered at 1.533 trillion yen ($10.2 billion), falling short of the anticipated 1.789 trillion yen. This disappointing data led to fluctuations in Japanese indices, with the Nikkei 225 closing 0.84% lower and the Topix down 1.11%.

Corporate updates also influenced market sentiment. SoftBank Group unveiled a substantial 500 billion yen ($3.4 billion) share buyback plan, yet its shares fell by over 3.5%. Conversely, Lasertec saw a remarkable 22.55% surge on the Nikkei following a robust financial report. In other regional markets, indices in China and Hong Kong reversed earlier losses, while South Korea’s Kospi and Australia’s S&P/ASX 200 ended the day lower.

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