Global Markets:
- Asian Stock Markets : Nikkei down 5.72%, Shanghai Composite down 0.62%, Hang Seng down 2.39% ASX down 2.18%
- Commodities : Gold at $2509.35 (1.17%), Silver at $28.98 (1.95%), Brent Oil at $80.13 (0.87%), WTI Oil at $76.99 (0.82%)
- Rates : US 10-year yield at 3.955, UK 10-year yield at 3.884, Germany 10-year yield at 2.228
News & Data:
- (USD) Unemployment Claims 249K vs 236K expected
- (USD) ISM Manufacturing PMI 46.8 vs 48.8 expected
Markets Update:
Japan’s benchmark indexes fell up to 5% on Friday, with most Asia-Pacific markets following a Wall Street sell-off due to recession concerns. The Nikkei extended its 2.62% decline from Thursday, hitting its lowest level since February, and later trimmed losses to trade at 4.56%. Topix also pared losses to 4.47%. Significant stock declines included Softbank Group, down over 5%, while Mitsui and Marubeni lost over 8% and 6%, respectively. Tokyo Electron dropped more than 9%. Japanese government bond yields fell, with the 10-year JGB yield dropping below 1%.
In South Korea, the Kospi tumbled 3.19%, mainly due to banking stock losses, while the small-cap Kosdaq plunged 3.46%. However, K-pop stocks defied the trend, led by Hybe, which announced a new business strategy on Thursday. Australia’s S&P/ASX 200 declined 2.18%, retreating from its all-time high. Hong Kong’s Hang Seng index fell 2%, while mainland China’s CSI 300 saw the smallest loss in Asia, down 0.66%. South Korea’s July inflation numbers were slightly higher than expected, with the consumer price index rising 2.6% year-on-year, compared to the 2.5% forecast by economists polled by Reuters.
The negative sentiment in Asian markets followed a Wall Street sell-off on Thursday, where all three major U.S. indexes dropped amid recession fears. The Dow Jones Industrial Average fell 1.21%, the S&P 500 lost 1.37%, and the Nasdaq Composite declined 2.3%. The Russell 2000 index, which had recently rallied, dropped 3%. U.S. initial jobless claims rose the most since August 2023, and the ISM manufacturing index signaled economic contraction at 46.8%.
Following this data, the 10-year Treasury yield dropped below 4% for the first time since February. The global market sentiment reflects heightened economic uncertainty, with investors closely monitoring central bank actions and economic indicators.
Upcoming Events:
- 12:30 PM GMT – USD Average Hourly Earnings m/m
- 12:30 PM GMT – USD Non-Farm Employment Change
- 12:30 PM GMT – USD Unemployment Rate
