Global Markets:
- Asian Stock Markets : Nikkei up 0.60%, Shanghai Composite down 0.35, Hang Seng down -2.05% ASX up 0.12%
- Commodities : Gold at $2002.05 (-0.18%), Silver at $23.237 (-0.69%), Brent Oil at $86.26 (0.42%), WTI Oil at $82.75 (0.53%)
- Rates : US 10-year yield at 4.885, UK 10-year yield at 4.615, Germany 10-year yield at 2.826
News & Data:
- (JPY) Unemployment Rate 2.6% vs 2.6% expected
- (JPY) Prelim Industrial Production m/m 0.2% vs 2.4% expected
- (JPY) Retail Sales y/y 5.8% vs 6.0% expected
Markets Update:
Japan’s stock market initially faced losses following the Bank of Japan’s monetary policy decision, but it later stabilized, in contrast to several other Asia-Pacific markets that experienced declines due to an unexpected contraction in manufacturing activity in China. The Bank of Japan chose to keep its short-term lending rate unchanged and announced adjustments to its yield curve control policy to enhance flexibility.
In other news for the day, China’s manufacturing purchasing manager’s index (PMI) data for October fell to 49.5, missing expectations set at 50.2 according to a Reuters poll. A PMI reading below 50 indicates a contraction in the manufacturing sector. Specifically, Japan’s Nikkei 225 index managed to recover from its earlier losses and ended the day by a modest gains of 0.60%, while the Topix index showed a gain of 0.53%.
South Korea’s Kospi index, on the other hand, experienced a decline of 1.43%, and the Kosdaq index dropped by 2.68%. Hong Kong’s Hang Seng index dropped by 2.05%, and mainland China’s CSI 300 index shed 0.66% of its value. In Australia, the S&P/ASX 200 index managed to end the day with a slight gain of 0.12% at 6,780.7, rebounding from its lowest point of the year.
Meanwhile, in the United States, the stock market experienced a rally on Monday. The S&P 500 index moved out of correction territory, setting the stage for a significant week filled with events, including a Federal Reserve rate decision, the release of the employment report, and Apple’s earnings. The Dow Jones Industrial Average saw a substantial gain of 1.58%, marking its best performance since June 2. The S&P 500 index surged by 1.2%, its most substantial increase since late August, and the Nasdaq Composite also recorded a notable rise of 1.16%.
Upcoming Events:
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Employment Cost Index q/q
- 1:00 PM GMT – USD HPI m/m
- 1:45 PM GMT – USD Chicago PMI
- 2:00 PM GMT – USD CB Consumer Confidence
