Asian Market Mixed, Japan’s Nikkei 225 Hits Another Record High With Attention On the Federal Reserve
Tokyo’s Nikkei 225 index hit a new intraday high increasing by 0.6% to 41,831.99 reaching a new all-time high but later retreated
In today’s trading, Asian shares were mixed following Federal Reserve Chair Jerome Powell’s remarks to Congress, which did little to alter investor’s expectations regarding the timing of a Fed interest rate cut.
Tokyo’s Nikkei 225 index hit a new intraday high increasing by 0.6% to 41,831.99 reaching a new all-time high but later retreated, dipping 0.1% to 41,536.10 by midday.
Over the past year, the Nikkei 225 index has surged nearly 30%, as investors have shown particular enthusiasm for technology-related shares, fueled by the growing potential of artificial intelligence. Additionally, export-focused companies have experienced significant gains, driven by substantial profit increases due to the weak Japanese yen.
In Hong Kong, the Hang Seng index rose 0.4% to 17,587.16, while the Shanghai Composite index fell 0.3% to 2,949.60.
China reported that its consumer price index dropped to 0.2% in June from 0.3% in May, falling below expectations due to declines in prices for foods other than pork. Factory prices fell 0.8% matching expectations. Core inflation, excluding food and energy edged up 0.6%. While pork prices increased, beef prices declined. Tourism spending also slowed.
Meanwhile, market watchers are concerned about deflation risks, citing weak domestic spending, which may push China to rely more on exports to sustain its economy. This contrasts sharply with the US, where prices remain high. Traders are now looking to Friday’s trade report for further insights into China’s economic trajectory.
Lynn Song of ING Economics stated that weak consumer confidence continues to drive consumption towards better value-for-money purchases, and competition in the EV sector continues to drive prices down, suppressing overall inflation.
Elsewhere in Asia, Kospi dropped 0.2% to 2,862.89. Meanwhile, Taiwan’s Taiex and India’s Sensex both rose by 0.2%.
Australia’s S&P/ASX 200 declined by 0.3% to 7,806.30
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals