Global Markets:
- Asian Stock Markets : Nikkei up 10.27%, Shanghai Composite up 0.07%, Hang Seng down 0.11% ASX up 0.41%
- Commodities : Gold at $2446.35 (-0.17%), Silver at $27.28 (-0.54%), Brent Oil at $77.03 (1.17%), WTI Oil at $73.69 (1.2%)
- Rates : US 10-year yield at 3.853, UK 10-year yield at 3.874, Germany 10-year yield at 2.212
News & Data:
- (USD) Final Manufacturing PMI 55.0 vs 56.0 expected
- (USD) ISM Manufacturing PMI 51.4 vs 51.1 expected
Markets Update:
Japan stocks rebounded sharply on Tuesday after the Nikkei 225 and the Topix plunged over 12% in the previous session. The Nikkei 225, which faced its biggest loss since the 1987 Black Monday crash, and the Topix both climbed 9%, pushing both indexes back into positive territory for the year. Other Asia-Pacific markets also saw gains, with South Korea’s Kospi surging over 3% and the small-cap Kosdaq rising more than 5%. Samsung Electronics increased by 2.1%, and chipmaker SK Hynix climbed 4.5%.
The Bank of Japan’s rate hike to its highest level since 2008 on July 30 strengthened the yen to a seven-month high, pressuring stocks. Global markets were jittery due to fears of a U.S. recession from a weaker-than-expected jobs report and the unwinding of the yen “carry trade.” Japan’s major trading houses rebounded by more than 6%, with Mitsui rising over 9%, and Softbank Group Corp jumping more than 8%. Automakers and semiconductor suppliers, including Honda and Renesas Electronics, saw gains of over 13% and 17%, respectively.
Mainland China’s CSI 300 traded flat, while Hong Kong’s Hang Seng index rose 0.9%. Australia’s S&P/ASX 200 was up 0.4%. Oil prices also increased, with Brent crude rising 1.65% to $77.56 per barrel and U.S. West Texas Intermediate crude climbing 1.86% to $74.30 per barrel. The yen weakened by 0.83%, trading at 145.37 against the U.S. dollar.
In economic data, Japan’s June household spending fell 1.4% year-over-year, while real wages grew 1.1%, marking the first rise in 26 months. The Reserve Bank of Australia held its cash rate steady at 4.35% and slightly upgraded its GDP growth forecast for the year. In the U.S., the Dow and S&P 500 experienced their worst sessions since September 2022, with the Dow dropping 2.6%, the S&P 500 falling 3%, and the Nasdaq Composite shedding 3.43%.
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