New Economic Data Spurs Mixed Asia-Pacific Markets

Asia-Pacific markets show mixed results as the Bank of Korea holds rates, Japan’s PMI rises, and US oil inventories drop.

Global Markets: Asian stock markets displayed a mixed performance on Thursday as investors weighed various economic indicators and central bank decisions. The Nikkei declined by 0.60%, while the Shanghai Composite fell by 0.30%. Conversely, the Hang Seng Index saw a modest increase of 0.57%, and the ASX 200 gained 0.24%.

Commodities: In commodity markets, gold was trading at $2,551.35, a slight decrease of 0.19%. Silver saw a minor uptick to $29.53, up by 0.01%. Oil prices experienced slight declines, with Brent crude at $76.18, down 0.09%, and WTI crude at $71.82, down 0.18%.

Rates: Government bond yields also varied, with the US 10-year yield at 3.805%, the UK 10-year yield at 3.893%, and the German 10-year yield at 2.201%.

News & Data:

• Canada: The Industrial Product Price Index (IPPI) for July came in at 0.0%, meeting expectations, while the Raw Materials Price Index (RMPI) rose by 0.7%, surpassing the -0.7% forecast.
• US: Crude oil inventories dropped by 4.6 million barrels, a more significant decrease than the expected 2.0 million.

New Economic Data Spurs Mixed Asia-Pacific Markets

Markets Update: Asia-Pacific markets showed mixed results as investors analyzed business activity data and awaited further economic insights. As anticipated, the Bank of Korea decided to keep its benchmark interest rate at 3.5%. The central bank highlighted a persistent decline in inflation but stressed the importance of monitoring real estate prices and household debt.

This decision followed the Federal Reserve’s July meeting minutes, which revealed some internal debate over the timing of potential rate cuts. While a few members suggested easing in July, the majority favored waiting until September, provided data trends remained steady.

In Japan, business activity accelerated in August, with the composite purchasing managers’ index rising to 53.0 from July’s 52.5. This increase reflected growth in both the manufacturing and services sectors.

South Korea’s Kospi index fell 0.34% after an earlier rally, with the small-cap Kosdaq slipping 1.39%. In contrast, Hong Kong’s Hang Seng index advanced by 0.5%, and mainland China’s CSI 300 edged down 0.24%.

Australia’s S&P/ASX 200 experienced a 0.24% increase, driven by the country’s flash composite PMI for August, which reached a three-month high of 51.4. This increase was primarily due to rising service activity.

In the US, major stock indices saw gains following the Fed minutes. The S&P 500 approached its record high, the Nasdaq Composite rose by 0.57%, and the Dow Jones Industrial Average increased by 0.14%.

Upcoming Events:

• 12:30 PM GMT: USD Unemployment Claims
• 01:45 PM GMT: USD Flash Manufacturing PMI
• 01:45 PM GMT: USD Flash Services PMI

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.