Nikada
Asia-Pacific equity market rise as Nikkei hits new all-time high and tracking mixed session on Wall Street, with a keen focus on upcoming inflation data and earnings season.
Japan (NKY:IND) +1.96%. The Nikkei 225 Index hit new all-time highs as enthusiasm over artificial intelligence and related technologies, as well as a weak yen, continued to push equities higher.
Japan’s machine tool orders increased by 9.7% year-on-year to JPY 133,817 million in June 2024, much faster than a 4.2% growth in the previous month.
China (SHCOMP) +1.26%. Reversed losses from earlier in the session and rebounding slightly from five-month lows as investors look forward to several significant economic data releases from China, particularly focused on China’s upcoming inflation data, scheduled for release the following day to gauge the economic outlook.
The PBoC tightened its grip on interest rates on Monday by launching a new mechanism to influence short-term borrowing costs.
Meanwhile, China-EU trade tensions mounted, with Beijing planning to hold an anti-dumping hearing next week about the Brandy bought from the EU.
The country’s trade figures, loans data, and vehicle sales numbers are also anticipated later this week to provide further clarity on economic trends and consumer behavior.
Hong Kong (HSI) +0.09%. Slipped for the fourth session and nearing their lowest in 11 weeks amid losses across all sectors.
India (SENSEX) +0.38%. India’s equities halted losses from the prior two sessions while hitting a fresh record peak, supported by foreign capital inflows amid hopes of a dovish statement from the Fed Chair.
The fresh data from RBI showed the employment rate in the country rose to 6% in FY2024, the highest since 1982, from 3.2% in FY2023.
Australia (AS51) +0.86%. Data showed that Australian consumer confidence declined in July due to persistent concerns about high inflation, elevated interest rates, and a weak economy. On the other hand, business sentiment jumped to a 17-month high in June.
In the U.S., on Monday, all three major indexes ended mixed as investors continued to assess the outlook for Federal Reserve monetary policy while awaiting key inflation data and earnings reports from major firms.
U.S. stock futures climbed higher on Tuesday after another mixed session on Wall Street: Dow +0.04%; S&P 500 +0.12%; Nasdaq +0.28%.
Investors are awaiting Fed Chair Jerome Powell’s testimony and comments from other Fed officials later this week, as well as the crucial US inflation report, for more cues on the US interest rate path.
Earnings are also set to come from PepsiCo and Delta Air Lines on Thursday, and Citigroup and JPMorgan Chase on Friday.
Elsewhere, traders are monitoring geopolitical developments in the Middle East amid the prospects of a ceasefire deal between Israel and Hamas.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).