Asia report: Markets mixed as investors turn to next Fed meeting
Markets in Asia were in a mixed state on Monday, as investors held their breath ahead of the next Federal Reserve meeting in the US, and continued to react to disappointing industrial data out of China on Friday.
AUD/USD
$0.6610
11:26 04/05/24
GBP/NZD
NZD2.0870
23:53 03/05/24
Hang Seng
18,475.92
10:20 03/05/24
Nikkei 225
38,236.07
09:44 02/05/24
USD/JPY
¥152.9745
11:26 04/05/24
In Japan, the Nikkei 225 eked out gains of 0.03% to close at 21,124.00, as the yen weakened 0.07% against the dollar to last trade at JPY 108.64.
Of the major components on the Tokyo benchmark, automation specialist Fanuc was down 0.23%, while fashion firm Fast Retailing added 1.32% and technology conglomerate SoftBank Group rose 1.85%.
Japan Display, one of Apple’s key screen technology suppliers, saw its shares sink 7.02% after it confirmed that Taiwan-based display panel manufacturer TPK Holding had decided not to invest in the Japanese company.
The broader Topix index was down 0.45%, closing the trading day at 1,539.74.
On the mainland, the Shanghai Composite was ahead 0.2% at 2,887.62, and the smaller, technology-heavy Shenzhen Composite shrank 0.2% to 1,502.12.
Investors in China were still digesting hugely disappointing data released on Friday, which showed growth in industrial output slowed to a 17-year low point in May, well below expectations.
Growth for the month was recorded at 5% year-on-year, missing the 5.5% figure tipped by analysts in a Reuters poll.
South Korea’s Kospi was 0.22% lower at 2,090.73, while the Hang Seng Index in Hong Kong rose 0.4% to settle at 27,227,16.
Tensions were still heated in the special administrative region of China, as thousands of protestors continued to gather in opposition to an extradition bill set to benefit Beijing.
Hong Kong’s chief executive, Carrie Lam, had suspended the implementation of the bill, but protestors were demanding the bill’s full withdrawal, as well as the resignation of Lam from the region’s top office.
The blue-chip technology stocks were mixed on the Korean peninsula, with Samsung Electronics slipping 0.23%, while chipmaker SK Hynix rose 0.95%.
Attention in the region also turned across the Pacific towards the US on Monday, as market watchers mused the possibility of the Fed cutting interest rates.
There remained a number of factors at play, however, including the upcoming G20 meeting at which Washington and Beijing could reach a trade agreement, however distant such a possibility seemed at present.
“Sentiments around the ability to achieve a positive turn in US-China trade negotiations, should the Trump-Xi meeting materialise at the sidelines of the G20, remain tentative,” noted Mizuho Bank’s Vishnu Varathan.
“And the G20 itself is merely a stage to kick the can down the road and a long, long way off a complete retraction of global trade tensions.”
Oil prices were lower as the region went to bed, with Brent crude last down 0.44% at $61.74 per barrel, and West Texas Intermediate slipping 0.56% to $52.22.
In Australia, the S&P/ASX 200 lost 0.35% to close at 6,530.90 by end-of-play.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.6% at 10,170.26, led lower by aged care developer Ryman Healthcare, which was down 2.5%.
The down under dollars were mixed on the greenback, with the Aussie remaining stable at AUD 1.4554, while the Kiwi strengthened 0.26% to NZD 1.5365.