Nikada
The Asia-Pacific equity markets were mostly higher on Thursday, in the wake of solid sessions overnight at Wall Street’s S&P 500 and Nasdaq after a mixed US consumer inflation report that raised bets for a smaller 25 basis point rate cut from the Federal Reserve next week.
The Japan (NKY:IND) +3.46% jumped while the broader Topix Index gained 2.6% to 2,600 on Thursday, reversing losses from the previous session as Bank of Japan officials indicated plans to hike rates steadily.
BOJ board member Naoki Tamura said on Thursday that the central bank must push up short-term rates to at least around 1% through fiscal 2026 to stably achieve the 2% inflation target.
Domestically, data showed that producer prices in Japan rose less than expected in August, while business sentiment jumped in the third quarter.
China (SHCOMP) -0.05% fell on Thursday, hovering near seven-month lows, as weak sentiment in China continued to pressure the market.
Geopolitical risks and trade tensions with other major economies also added to the bearish sentiment in the country. Also, some traders saw the risk of punitive tariffs on Chinese goods eased after Tuesday’s US presidential debate.
Hong Kong (HSI) +0.91% climbed in Thursday morning trade, shifting from a downbeat session the day before.
India (SENSEX) +0.26%.
Australia (AS51) +0.70% rose on Thursday, erasing losses from the previous session, with mining and energy stocks leading the gains amid firmer commodity prices.
Consumer inflation expectations in Australia stood at 4.4% in September 2024, slightly down from August’s 4-month high of 4.5%.
New Zealand’s annual food inflation edged down to 0.4% in August from 0.6% in the previous month.
In the U.S., on Wednesday, all three major indexes ended higher as investors weighed the latest inflation data and its implications for Federal Reserve policy.
Markets now foresee an 85% chance of a 25 basis points cut at next week’s Fed meeting, up from around 70% prior to the release, as per the CME FedWatch tool.
On the political front, the presidential debate raised chances for a Kamala Harris victory, boosting solar stocks while pressuring crypto firms.
U.S. stock futures held steady on Thursday after a tech-led rally on Wall Street in the previous session: Dow +0.10%; S&P 500 +0.18%; Nasdaq +0.33%.
Investors will now focus on the US producer price index and initial jobless claims reports scheduled for later in the day for further insights.
Market participants also look ahead to expected interest rate cuts from the ECB and Fed this week and next week.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
More on Asia:
Japan’s PPI rises less than expected in August; BOJ official indicates plans to hike rates steadily
China’s trade surplus widens in August, exports grow fastest since March 2023 and imports missed forecasts
China CPI inflation picks up, but misses forecast, PPI continues to shrink
Japan Q2 GDP revised down to weaker gain
Australia’s trade surplus rises to five-month high in July; investors digest Bullock remarks
