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Stock markets in the Asia-Pacific region showed mixed figures on Wednesday, following a global rally as weak US producer inflation data reinforced expectations of Federal Reserve rate cuts this year. The New Zealand dollar lost 1% to around $0.601 on Wednesday after the Reserve Bank of New New Zealand has unexpectedly cut interest rates.
Japan (NKY:IND) +0.58%The Nikkei 225 index rose on Wednesday, extending gains from the previous session.
Prime Minister Fumio Kishida will reportedly not run for re-election as party leader in September.
Domestically, investors digested the latest Reuters Tankan poll, which showed that business sentiment in the manufacturing sector weakened slightly in August due to weak demand from China.
China (SHCOMP) -0.60%The Shanghai Composite fell on Wednesday, closing at its lowest in six months, as investors turned cautious ahead of key corporate earnings and economic reports in China this week and traders also assessed a sharper-than-expected decline in Chinese credit growth.
Recent data shows that Chinese banks have issued new yuan loans worth CNY 260 billion for July 2024, a significant decline from the CNY 345 billion granted in the same month last year. The market forecast of CNY 450 billion was also not met.
Traders are now focusing on tomorrow’s economic data, including industrial production, retail sales and the unemployment rate.
Hong Kong (HSI) -0.46%. Hong Kong stocks fell in early trading on Wednesday, marking their first decline in six trading days.
India (SENSEX) +0.28%The BSE Sensex gained in morning trade on Wednesday, halting losses of the previous two sessions.
Wholesale prices in India rose 2.04% in July 2024 compared to the same period last year, slowing from the previous month’s increase of 3.36%, which was the highest since February and below market forecasts of a 2.39% increase.
Australia (AS51) +0.31%The S&P/ASX 200 index rose on Wednesday, marking its fourth consecutive increase.
The S&P/NZX 50 index rose 2.06% to 12,573 on Wednesday, its biggest daily gain in over two months, after the Reserve Bank of New Zealand unexpectedly cut interest rates and announced further easing.
In the US, all three major indices closed higher on Monday as markets interpreted lower-than-expected data on producer inflation, fuelling speculation that the US Federal Reserve could consider a deeper interest rate cut in September.
US stock futures were little changed on Wednesday as investors awaited the highly anticipated consumer inflation data for July for confirmation that price growth has continued to weaken: Dow +0.09%; S&P500 -0.01%; Nasdaq –0.02%.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
