Global Markets:
- Asian Stock Markets : Nikkei up 0.6%, Shanghai Composite up 1.2%, Hang Seng up 2% ASX up 0.4%
- Commodities : Gold at $2549.35 (-0.49%), Silver at $29.83 (-0.41%), Brent Oil at $79.2 (0.49%), WTI Oil at $76.72 (0.48%)
- Rates : US 10-year yield at 3.861, UK 10-year yield at 4.021, Germany 10-year yield at 2.275
News & Data:
- (USD) Prelim GDP q/q 3.0% vs 2.8% expected
- (USD) Unemployment Claims 231K vs -232K expected
Markets Update:
Asia-Pacific markets surged on Friday, buoyed by encouraging U.S. economic data that eased recession concerns. Investors also digested a variety of economic reports from Japan.
In the U.S., initial jobless claims slightly fell to 231,000, just above the expected 230,000, down from the previous week’s 232,000. Meanwhile, second-quarter GDP growth was revised upward to 3% from the initial 2.8%, signaling stronger economic momentum.
Japan saw a rise in Tokyo’s inflation rate to 2.6% in August, up from 2.2% in July, marking the highest level since March. The core inflation rate, which excludes fresh food prices, increased to 2.4%, surpassing the 2.2% anticipated by economists. Tokyo’s inflation is often seen as a bellwether for nationwide trends, suggesting the Bank of Japan may have more flexibility to tighten monetary policy.
However, Japan’s unemployment rate ticked up to 2.7% in July, above the expected 2.5%. Retail sales grew by 2.6% year-on-year, missing the 2.9% forecast and down from June’s revised 3.8% increase.
Japan’s Nikkei 225 rose 0.6%, and the Topix gained 0.37%. Hong Kong’s Hang Seng index led Asian markets with a 2% increase, followed by mainland China’s CSI 300, which rose 1.72%. South Korea’s Kospi advanced 0.6%, and the Kosdaq gained 0.92%, despite a 1.9% month-on-month drop in retail sales.
In Australia, the S&P/ASX 200 rose 0.4%, nearing its all-time high. In the U.S., the Dow Jones hit a record high, closing up 0.59% at 41,335.05, while the Nasdaq Composite slid 0.23%, impacted by Nvidia’s 6.4% drop.
Upcoming Events:
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Core PCE Price Index m/m
