Asian Markets Falter Amid Dollar Recovery And Anticipation of Central Bank Decision
Asian stocks fluctuated on Friday as the dollar bounced back from one-year lows ahead of a highly anticipated speech
In today’s trading, Asian stocks fluctuated on Friday as the dollar bounced back from one-year lows ahead of a highly anticipated speech by the US Federal Reserve Chair Jerome Powell.
In Japan, the Nikkei 225 started the day higher, experienced some volatility, but ultimately closed with a 0.4% gain. This came after the Bank of Japan Governor addressed the nation’s Parliament and suggested that further rate hikes could be off the table if inflation in Japan continues to ease.
On the economic front, Japan’s “core” inflation rate for July, excluding food prices, rose by 2.7% year-on-year, remaining above the Bank of Japan’s 2% target for the consumer price index (CPI). However, the “core-core” inflation rate, which excludes both food and energy costs, saw a more modest increase of 1.9% year-over-year in July.
The Japanese yen strengthened, driven by the rising expectations for potential interest rate hikes. European and US futures presented mixed signals, while commodity prices declined. Investors are closely watching for signals on potential US rate cuts starting in September.
In Hong Kong, the Hang Seng Index opened lower and failed to recover, ending the day down 0.2% as traders continued to shy away from property and tech stocks.
The Hang Seng dropped 28.90 points to 17,612.10, with declining stocks outnumbering advancing ones 56 to 24. The Hang Seng TECH Index fell by 1.1%, while the Mainland Properties Index declined by 0.7%. On the upside, Ping An Insurance rose 3.6%, whereas video-game developer NetEase plunged 10.3%, both driven by their recent earnings reports.
Meanwhile, the Shanghai Composite on the mainland increased by 0.2% to 2,854.37.
South Korea’s KOSPI declined by 0.2%; Taiwan’s TWSE remained steady; Australia’s ASX 200 was flat; Singapore’s Straits Times Index rose by 0.4%, and Thailand’s SET Index gained 1%. In late trading in Mumbai, the Sensex was up 0.1%.
- 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
Save