Nikada
Asia-Pacific equity markets mostly in red as the dollar strengthened across the board, and appreciated toward 34-year highs against the yen due to the Bank of Japan’s refusal to tighten policy quicker. Investors also look ahead to more domestic economic reports this week.
Japan (NKY:IND) +0.79%. The Japanese yen depreciated past 159 per dollar, at risk of sinking to over three-decade lows, as BOJ officials remained divided on how to proceed with the next interest rate hike.
Investors now look ahead to more economic reports this week, including retail sales, industrial production and unemployment data for May, as well as Tokyo’s inflation figures for June.
China (SHCOMP) -0.39%. As investors continued to pull capital out of China as macro data continues to disappoint, while the lack of forceful policy support measures dampened sentiment further.
Foreign direct investment into China dropped by 28.2% year-on-year to CNY 412.5 billion during January-May of 2024.
As per reports, China and the EU have agreed to start talks on the bloc’s plans to impose tariffs on EVs imported from the Asian nation.
Hong Kong (HSI) -0.73%.
India (SENSEX) -0.08%. As traders continued to assess the country’s 2024-2025 pre-budget consultations, which will contain potential tax cuts for lower-income individuals, marking the first such cuts in seven years.
Australia (AS51) -0.75%. Investors cautiously awaited Australian inflation figures this week.
In the U.S., on Friday, all three major indexes ended mostly lower as Nvidia and other artificial intelligence-related chip stocks met heavy selling after a strong run.
Meanwhile, President Joe Biden and his rival, Donald Trump, will have their first presidential debate later this week.
U.S. stock futures eased on Monday as investors searched for fresh catalysts in the final trading days of June and the first half of 2024, with the market hovering near record highs: Dow -0.12%; S&P 500 -0.01%; Nasdaq +0.04%.
Investors are now looking to this week’s economic data, including Friday’s core PCE price index, Q1 GDP growth, the Fed’s preferred inflation measure, and several comments from Fed officials for clarity on the timeline for interest rate cuts.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).