Asia report: Markets mixed after weak US data
Markets in Asia ended Wednesday mixed, as weak services data out of the United States put the kibosh on the chances for a Federal Reserve rates rise in September.
AUD/USD
$0.6454
11:08 11/05/24
GBP/NZD
NZD2.0805
23:53 10/05/24
Hang Seng
18,963.68
10:21 10/05/24
Nikkei 225
38,229.11
09:44 10/05/24
USD/JPY
¥155.7705
11:08 11/05/24
In Japan, the Nikkei 225 lost 0.41% to finish at 17,012.44, with the yen strengthening against the dollar.
It was last 0.38% stronger against the greenback at JPY 101.63 per $1.
Analysts were picking a prolonged stronger streak for the yen, as markets continued to doubt the efficacy of Bank of Japan’s recent easing measures.
“Without the Fed around to support the heavy lifting in September, that is to raise rates, the market is less than convinced that any standard Bank of Japan policy will be effective at this stage,” said OANDA senior trader Stephen Innes.
“That said, the BoJ could still make a splash by pulling out some unconventional policy measure, but pressure is certainly mounting for some kind of action.”
E-commerce and internet company Rakuten saw its stock rise 7.2% after it emerged it will be included in the Nikkei Stock Average.
On the mainland, the Shanghai Composite was almost flat, adding 0.05% to close at 3,092.41, while the Shenzhen Composite lost 0.18% to 2,044.55.
South Korea’s Kospi was 0.23% lower to finish at 2,061.88, while in Hong Kong the Hang Seng Index lost 0.19% to 23,741.81.
Embattled shipping line Hanjin Shipping won a court order in the US granting bankruptcy protection, so its vessels can dock at American ports without the threat of creditors attempting to seize the ships.
Its shares lost 2.16% on Wednesday, after a massive 29.91% surge on Tuesday.
Malaysia’s central bank stood pat on its benchmark rate at 3%.
In its release, Bank Negara Malaysia said it made the decision as the economy was expected to remain steady, expanding within expectations in the current year.
Sentiment was muted after data from the US Institute for Supply Management showed the non-manufacturing PMI fell to 51.4 in August, which - while still indicating expansion - was down significantly from 55.5 in July.
“The number is a serious miss and all but wipes out the chance of a Fed rate hike in September,” said easyMarkets chief market strategist Anthony Darvall.
“If data continues to weaken, we will see the chances of December rate hike fall sharply as well.”
Oil prices were up during Asian trading, with Brent crude up 0.99% at $47.73 and West Texas Intermediate adding 1.02% at $45.29 per barrel.
In Australia, the S&P/ASX 200 added 0.2% to close at 5,425.20, with the energy sector dragging the benchmark down as its subindex lost 1.26%.
In spite of the higher oil prices, Santos lost 4.98% and Woodside Petroleum was 0.84% lower.
Those losses were slightly offset by gains in the materials subindex, which added 0.37%.
New Zealand’s benchmark S&P/NZX 50 hit yet another fresh record high, adding 0.9% to 7,571.1.
It was led by specialty dairy exporter The A2 Milk Company, which gained 5.1% after a series of negative days in the wake of its full-year results in late August.
The down under dollars were mixed, with the Aussie last 0.32% weaker against the greenback at AUD 1.3050, but the Kiwi strengthening 0.53% to NZD 1.3411 per $1.