AUS
NZ
UK
CA
USA
IND
_09_03_2024_15_14_58_050737.jpg)
Asia-Pacific markets experienced mostly declines on Tuesday as investors responded to South Korea's August inflation data, which showed the lowest annual rate since March 2021.
With Wall Street closed on Monday for Labor Day, the Asian session lacked overnight direction. Investors are now focused on the upcoming US non-farm payrolls report, which is anticipated to provide crucial guidance for Federal Reserve policy in 2024. Stephen Innes, managing partner at SPI Asset Management, noted that the report is highly anticipated and could significantly impact market sentiment. The pressure on this report is heightened due to a larger-than-expected negative revision to payroll data for the 12 months ending in March. This makes it essential for the upcoming numbers to be robust.
In China, the economic outlook remains challenging, with a pressing need for substantial fiscal stimulus aimed at boosting household spending. Innes highlighted that current measures, focusing primarily on credit supply, are insufficient to address the lack of consumer demand.
Market performance across the region varied:
- Japan: The Nikkei 225 inched down by 0.04% to 38,686.31, while the Topix index gained 0.64% to finish at 2,733.27. Declines in Tokyo included Fujikura, down 3.74%, Lasertec, which fell 3.44%, and Sumco Corporation, which decreased by 2.76%.
- China: The Shanghai Composite dropped by 0.29% to 2,802.98, whereas the Shenzhen Component rose by 1.17% to 8,268.05. Major losses in Shanghai were seen in SDIC Zhonglu Fruit Juice, which fell 5.43%, Shanghai Huitong Energy, down 5.4%, and China National Nuclear Power, which decreased by 5.18%.
- Hong Kong: The Hang Seng Index fell by 0.23% to 17,651.49, with significant losses in China Merchants Bank, down 3.11%, China Resources Power, which dropped 2.33%, and China Shenhua Energy, which declined by 2.26%.
- South Korea: The Kospi index slipped by 0.61% to 2,664.63, reacting to the inflation data. Notable declines included LG Innotek, which fell 7.86%, LG Display, down 5.6%, and NCsoft Corporation, which decreased by 3.8%.
- Australia: The S&P/ASX 200 index decreased by 0.08% to 8,103.20, with resource stocks suffering significant losses. Mineral Resources and Liontown Resources both dropped 8.45%, while Stanmore Resources fell 6.21%.
- New Zealand: The S&P/NZX 50 dropped 0.17% to 12,534.51, led by losses in Synlait Milk, down 4.88%, Restaurant Brands New Zealand, which fell 4.79%, and Fletcher Building, down 3.7%.
In currency markets, the dollar weakened by 0.81% against the yen, trading at JPY 145.73. However, it strengthened against the Australian dollar and New Zealand dollar, rising 0.62% to AUD 1.4818 and 0.57% to NZD 1.6136, respectively.
Oil prices showed mixed movements: Brent crude futures declined by 0.66% to $76.22 per barrel on ICE, while West Texas Intermediate crude rose by 0.11% to $73.63.
In South Korea, inflation for August slowed to 2% year-on-year, the lowest rate since March 2021. This was a decrease from July’s 2.6% increase and aligned with economists' forecasts. Monthly CPI rose by 0.4%, slightly surpassing the anticipated 0.3% increase.
