
This week, Asian markets showed a mixed reaction as global events unfolded, with China’s economic actions and U.S. inflation data taking center stage. While optimism surrounding rate cuts by the Federal Reserve remained strong, the market saw significant movement, particularly in Chinese and Japanese markets.
China’s Shanghai Composite Index tumbled by 2.6% to close at 3,217.74, as investors were cautious ahead of the anticipated fiscal stimulus announcements from Beijing. Despite the expectations, the uncertainty led to a downturn in the market as traders held off in anticipation of specific details.
Meanwhile, Hong Kong’s Hang Seng Index remained closed due to the Chung Yeung Festival, leaving investors awaiting the reopening of the market.
On the brighter side, Japan’s Nikkei 225 Index saw a rise of 0.6%, closing at 39,605.80. This increase was driven by optimism around earnings reports, particularly from the clothing retailer Uniqlo, which boosted confidence in the retail sector. However, the broader Topix Index saw a 0.2% decline, reflecting mixed sentiment across other sectors.
In South Korea, the Kospi closed marginally lower at 2,596.91, impacted by the Bank of Korea’s decision to cut interest rates for the first time in four years. While initially boosting the market, the gains were given up by the end of the trading session.
Australian markets also ended slightly lower, with the S&P/ASX 200 Index slipping by 0.1% to 8,214.50. While miners and banks underperformed, gold miners saw a surge supported by higher gold prices globally.
New Zealand’s S&P/NZX-50 Index climbed by 0.7% to 12,845.64, buoyed by slightly better manufacturing activity data, although the sector remained in contraction for the 19th consecutive month.
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