Asian Market Mixed, Japan’s Nikkei 225 Hits Another Record High With Attention On the Federal Reserve

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

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Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.
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