Global Markets:
- Asian Stock Markets : Nikkei down -1.70%, Shanghai Composite down 0.53%, Hang Seng down 3.01%, ASX down 1.25%
- Commodities : Gold at $1927.05 (-0.24%), Silver at $23.002 (-0.71%), Brent Oil at $76.53 (-0.1%), WTI Oil at $71.81 (+0.06%)
- Rates : US 10-year yield at 3.962, UK 10-year yield at 4.597, Germany 10-year yield at 2.518
News & Data:
- (AUD) Trade Balance 11.79B vs 10.85B expected
- (USD) Factory Orders m/m 0.3% vs 0.7% expected
- (USD) Wards Total Vehicle Sales 15.7M vs 15.3M expected
Markets Update:
Asia-Pacific markets saw significant losses in line with the latest market data. The minutes released by the U.S. Federal Reserve, revealing a division over the decision to pause rate hikes in June, had a notable impact. While the central bank foresees further hikes in the future but at a slower pace, the temporary pause aims to assess the effects of the most aggressive tightening measures since the early 1980s.
In Asian markets, Hong Kong’s Hang Seng index led the regional downturn, experiencing a decline of approximately 3% during the final hour of trading. In mainland China, the Shanghai Composite closed at 3,205.57, down by 0.54%, and the Shenzhen Component reached 10,968.37, representing a loss of 0.55%.
In Japan, the Nikkei 225 fell by 1.7% to reach 32,773.02, and the Topix experienced a decline of 1.3%, closing at 2,277.08. South Korea’s Kospi dropped to 2,556.28, down by 0.88%, while the Kosdaq fell by 2.32% to 870.52. Australia’s S&P/ASX 200 concluded its session at 7,161.1, sliding by 1.27%. In Southeast Asia, Malaysia’s central bank is expected to maintain its overnight policy rate at 3%, according to a Reuters poll.
Alongside the market fluctuations, there were notable movements in commodities. Gold prices dipped by 0.24% to $1927.05, while silver prices fell 0.71% to $23.002. Brent Oil saw a slight decrease of 0.1%, settling at $76.53, while WTI Oil experienced a minor increase of 0.06% to reach $71.81. These shifts in commodity prices contribute to the broader dynamics of the Asia-Pacific markets affected by the divided stance of the U.S. Federal Reserve on rate hikes and its potential implications.
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