Global Markets:
- Asian Stock Markets : Nikkei down 1.22%, Shanghai Composite up 0.00%, Hang Seng up 0.16%, ASX down 0.25%
- Commodities : Gold at $2032.95 (-0.13%), Silver at $25.09 (+0.21%), Brent Oil at $84.67 (-0.38%), WTI Oil at $80.28 (-0.41%)
- Rates : US 10-year yield at 3.281, UK 10-year yield at 3.418, Germany 10-year yield at 2.159
News & Data:
- (USD) ISM Services PMI 51.2 vs 54.3 expected
- (USD) ADP Non-Farm Employment Change 145K vs 208K expected
- (NZD) Official Cash Rate 5.25% vs 5.00% expected
Markets Update:
Asian markets closed mostly lower on Thursday as investors weighed the prospects of tighter monetary policy from major central banks amid signs of slowing economic growth. India’s central bank surprised markets by holding its benchmark interest rate steady at 6.5%, defying expectations for a 25 basis point hike. The Indian rupee weakened against the U.S. dollar, while the Nifty 50 index edged up slightly.
Japan’s Nikkei 225 led the losses in the region, dropping 1.3% as exporters were hurt by a stronger yen and weaker U.S. data. South Korea’s Kospi fell 1.4%, dragged down by tech and auto stocks. Australia’s S&P/ASX 200 slipped 0.4%, with energy and mining shares underperforming. Hong Kong’s Hang Seng index lost 0.4%, while the Hang Seng Tech index declined 0.5%. Mainland China’s Shanghai Composite and Shenzhen Component indexes ended marginally higher.
The mood in Asia was dampened by disappointing reports from the U.S., where private payrolls grew at a slower pace in March and service sector activity moderated more than expected. The data raised concerns about the strength of the U.S. recovery and the impact of higher interest rates on growth and corporate earnings.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose to a four-month high of 97.45 on Thursday, before easing slightly to 97.32 as of 5:30 p.m. IST. Gold prices fell to a three-month low of $1,241.80 per ounce, as the stronger dollar and higher yields reduced the appeal of the safe-haven metal. Crude oil prices rebounded from a two-week low, as OPEC+ members agreed to extend their production cuts until June to support the market.
Investors in Asia will be looking ahead to Friday’s U.S. nonfarm payrolls report, which is expected to show that employers added 240,000 jobs in March, down from 311,000 in February. A weaker-than-expected number could fuel doubts about the Fed’s rate hike path and weigh on market sentiment.
Upcoming Events:
- 12:30 PM GMT – (CAD) Employment Change
- 12:30 PM GMT – (CAD) Unemployment Rate
- 12:30 PM GMT – (USD) Unemployment Claims
- 02:00 PM GMT – (CAD) Ivey PMI
