Global Markets:
- Asian Stock Markets : Nikkei up 0.81%, Shanghai Composite down 0.77%, Hang Seng down 0.08% ASX up 1.19%
- Commodities : Gold at $2363.5 (0.27%), Silver at $30.58 (-0.74%), Brent Oil at $86.73 (-0.49%), WTI Oil at $83.31 (-0.67%)
- Rates : US 10-year yield at 4.371, UK 10-year yield at 4.202, Germany 10-year yield at 2.56
News & Data:
- (USD) ADP Non-Farm Employment Change 150K vs 163K expected
- (USD) Unemployment Claims 238K vs 234K expected
- (USD) Trade Balance -75.1B vs -76.3B expected
- (CAD) Trade Balance -1.9B vs -1.3B expected
Markets Update:
Asia-Pacific markets mostly rose on Thursday, with Japan’s major indexes and Taiwan’s benchmark hitting all-time highs. The Topix climbed 0.85%, surpassing its previous high set in December 1989, while the Nikkei 225 increased by 0.8%, exceeding its March record. SoftBank Group shares reached another record high, extending their winning streak to seven days, rising by 2.5%. Japanese companies have implemented the largest wage hikes in three decades this year, with monthly pay for union-backed workers increasing by an average of 5.1%, according to the nation’s largest labor union, Rengo.
Higher wage growth is expected to help Japan achieve a “virtuous cycle” of rising prices and wages, allowing the Bank of Japan to raise interest rates and normalize its monetary policy. The Taiwan Weighted Index also reached a new high, boosted by chip stocks, with Hon Hai Precision Industry (Foxconn) gaining over 5% and Taiwan Semiconductor Manufacturing Company rising by 2.66%. Investors also considered other regional data, such as Hong Kong business activity and Australian trade numbers.
S&P Global reported that Hong Kong’s composite purchasing managers’ index fell to 48.2 in June, marking the second consecutive month of declining private sector output. Hong Kong’s Hang Seng index rose 0.23%, while Mainland China’s CSI 300 remained flat. The onshore Chinese yuan weakened to its lowest level against the U.S. dollar in about nine months. Hong Kong-listed Chinese electric vehicle companies saw gains, with Nio rising by 6.15% and Xpeng increasing by 4.49%.
Australia’s trade surplus narrowed to 5.77 billion Australian dollars (USD 3.88 billion) in May, driven by rising exports of metal ores and minerals and increased imports of fuels and lubricants. Australia’s S&P/ASX 200 rose by 1.19%. South Korea’s Kospi gained 0.6%, while the Kosdaq was up by 0.45%. In the U.S., the S&P 500 added 0.51% to close at a record 5,537.02, and the Nasdaq Composite rose by 0.88%, ending at an all-time high of 18,188.30, while the Dow Jones Industrial Average dropped by 0.06%, closing at 39,308.
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