Global Markets:
- Asian Stock Markets : Nikkei down 2.01%, Shanghai Composite down 0.59%, Hang Seng down 1.29%, ASX down 0.93%
- Commodities : Gold at $1941.40 (-0.27%), Silver at $24.12 (-0.37%), Brent Oil at $83.95 (0.675%), WTI Oil at $79.50 (0.57%)
- Rates : US 10-year yield at 4.245, UK 10-year yield at 4.484, Germany 10-year yield at 2.531
News & Data:
- (GBP) GfK Consumer Confidence -25 vs -29% expected
- (JPY) Tokyo Core CPI y/y 2.8% vs 2.9% expected
- (JPY) SPPI y/y 1.7% vs 1.2% expected
Markets Update:
Asia-Pacific markets witnessed a widespread decline as investors positioned themselves for insights into U.S. monetary policy based on remarks from central bankers at the Jackson Hole meeting scheduled for Friday. The spotlight was on the speech by U.S. Federal Reserve Chair Jerome Powell.
Leading the downward trend across Asia, Japan’s Nikkei 225 experienced a notable slide of 2.05%, closing at 31,624.28. Accompanying this, the Topix index dipped by 0.88% to conclude at 2,266.4. These declines marked an interruption to the four-day winning streak for both indices.
Notably, Japan’s core inflation rate for its capital city, Tokyo, stood at 2.8% for August, slightly below the economists’ consensus of 2.9% as per a Reuters poll. This core rate excludes the volatility of fresh food prices. The broader inflation measure for Tokyo was noted at 2.9%, reflecting a drop from the 3.2% figure reported in July.
Meanwhile, Australia’s S&P/ASX 200 index underwent a 0.93% loss, wrapping up at 7,115.2. South Korea’s Kospi index followed suit with a 0.73% decline, accompanied by the Kosdaq index experiencing a milder decrease of 0.26%.
Shifting to the United States, the preceding day witnessed declines across all three major indexes as the momentum driven by the tech sector came to a halt. The Dow Jones Industrial Average experienced its most substantial daily drop since March, and similarly, the S&P 500 and the Nasdaq Composite reported their most noteworthy single-day declines since August 2nd.
Upcoming Events:
- 2:00 PM GMT – USD Revised UoM Consumer Sentiment
- 2:00 PM GMT – USD Revised UoM Inflation Expectations
- 2:05 PM GMT – USD Fed Chair Powell Speaks
