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Asia-Pacific equity markets started the second half of the year on a positive note as investors digested the mixed Chinese PMI data, and the data showed that confidence among large Japanese manufacturing firms improved to a two-year-high in Q2 amid an improving economic outlook.
Japan (NKY:IND) +0.12%. The consumer confidence index in Japan increased to 36.4 in June 2024 from May’s six-month low of 36.2 but below market forecasts of 36.5.
The au Jibun Bank Japan Manufacturing PMI was revised lower to 50.0 in June 2024 from a preliminary reading of 50.1 and to 50.4 in May.
China (SHCOMP) +0.92%. The mainland stocks are struggling to gain traction as investors react to mixed business activity reports in China.
China’s official report pointed to the second straight month of manufacturing downturn in June at 49.5. Meanwhile, the services sector remained in expansion but slowed to six-month low.
In contrast, a private survey pointed out that Caixin Manufacturing PMI in June increased to its highest level since May 2021, beating market forecasts by 51.8.
Hong Kong (HSI) market closed.
India (SENSEX) +0.56%. The BSE Sensex approached its highest level on record, as easing PCE inflation raised hopes of US interest rate cuts this year.
The HSBC India Manufacturing PMI came in at 58.3 in June 2024, up from May’s 57.5 but slightly below both preliminary estimates and market forecasts of 58.5.
Australia (AS51) -0.22%. The revised data showed that Australia’s June manufacturing activity contracted the most since May 2020, to 47.2, amid a sharp decline in new orders, while a Melbourne Institute report pointed to persistent inflationary pressure.
Investors now look ahead to the latest policy meeting minutes from the Reserve Bank of Australia this week to assess the monetary policy outlook.
In the U.S., on Friday, all three major indexes ended lower on the last trading session of June as investors digested a batch of economic data.
U.S. stock futures rose on Monday as investors searched for fresh catalysts in the second half of 2024: Dow +0.18%; S&P 500 +0.08%; Nasdaq +0.04%.
Investors now look ahead to US manufacturing activity data later on Monday for further insight into the economy, as well as more Fedspeak later this week. Investors’ attention will also focus on the US payrolls report and FOMC minutes due this week to seek clarity on the timing of Fed rate cuts.
Bitcoin climbed above the $63,000 mark, reaching its highest levels in a week and leading a rally among major cryptocurrencies amid expectations that US regulators would approve Ether exchange-traded funds later this month.
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