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Asia-Pacific equity markets were mixed on Wednesday as investors shrugged off an unexpectedly high inflation rate in Australia, while the yen continued to thread near 160 per dollar, which previously prompted Japanese authorities to intervene in the currency markets.
Japan (NKY:IND) +1.26%. Domestic shares also continued to benefit from a weak yen, which boosts the profit outlook for Japan’s export-heavy industries, although a further decline in the currency could spur another government intervention.
China (SHCOMP) +0.66%. Both benchmarks sink to their lowest levels in four months as Chinese authorities fail to allay market concerns about China’s shaky economic recovery.
Investors also continued to assess the outlook for the country’s EV manufacturers as China called on the EU to scrap duties of up to 38.1% on its electric vehicles.
Hong Kong (HSI) +0.27%.
India (SENSEX) +0.59%. Traders profit-booked after the index hit new highs and breached the 78,000 level for the first time a day before.
Australia (AS51) -0.71%. Australia’s monthly CPI indicator increased by 4% in May, accelerating from 3.6% in April and exceeding market expectations of 3.8%.
In the U.S., on Tuesday, all three major indexes ended mixed, as the tech sector outperformed following a significant sell-off the previous day, during which investors shifted away from semiconductor and artificial intelligence stocks to other sectors.
U.S. stock futures held steady on Wednesday after the S&P 500 and Nasdaq Composite snapped a three-day losing streak amid a rebound in Nvidia and other technology stocks: Dow +0.03%; S&P 500 +0.14%; Nasdaq +0.20%.
Market participants are now awaiting the US PCE price index, the Federal Reserve’s favored gauge of inflation, slated for release on Friday, which could provide further clues on the Fed’s rate cut trajectory and China’s industrial profits, as well as manufacturing and services PMIs.
Key events, such as the first US presidential debate between Joe Biden and Donald Trump on Thursday and the French elections on Sunday, are also in the spotlight.
On the geopolitical front, South Korean reports indicated that North Korea attempted to launch an unidentified ballistic missile but failed, exacerbating tensions between South and North Korea.
Bitcoin jumped more than 2% toward $62,000, rebounding from near two-month lows in a likely technical bounce as buyers stepped in around the $60,000 level.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).