Asian Markets Showed Mixed Performance Amid Inflation Optimism and Political Uncertainty

In today’s trading, Asian markets showed another mixed performance.

Sophia Cruz•Wednesday, August 14, 2024•1 min read

In today’s trading, Asian markets showed another mixed performance. Japan’s benchmark shows initial gains losing momentum following news that the prime minister will not seek re-election as the ruling party leader.

Asian Markets Showed Mixed Performance Amid Inflation Optimism and Political Uncertaint

Japan’s Nikkei 225 increased by 0.4% in afternoon trading, reaching 36,393.58, after experiencing daily fluctuations.

The ruling Liberal Democratic Party in Japan, which holds the majority in the lower house of parliament and selects the nation’s leader, is facing declining public support for Prime Minister Fumio Kishida. Recent Japanese media polls attribute this to a scandal involving questionable finances and Kishida’s general unpopularity among voters.

Speculations suggest that the party may opt for a younger leader, with names like Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi, being considered. The younger Koizume, still in his 40s, represents a shift from the traditionally older prime ministers.

The overnight gains on Wall Street also contributed to positive investor sentiment. Despite a rise in Japanese share prices during the morning trading, profit-taking led to a temporary decline before prices rebounded.

As a result, global markets remain cautious due to uncertainty surrounding the US economy. The upcoming week will bring key economic data for Japan, including machinery orders, trade statistics, foreign traveler numbers, unemployment, and consumer prices. Analysts believe that Japan’s economy remains fundamentally strong, driven by the robust performance of some Japanese companies.

Meanwhile, the Hang Seng index fell by 0.6% to 17,077.10, and the Shanghai Composite dropped by 0.5% to 2,852.96.

South Korea’s Kospi climbed by 0.7% to 2,640.23 while Australia’s S&P/ASX 200 rose by 0.3% to 7,850.70.

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ABOUT THE AUTHOR See More

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.