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US Session Update: Asia-Pacific Markets Witness Volatility Amid Global Talks and Regional Factors

Global Markets:

  •  Asian Stock Markets : Nikkei down 0.35%, Shanghai Composite down 0.71, Hang Seng down 1.41% ASX down  0.67%
  • Commodities : Gold at $1967.05 (0.17%), Silver at $23.59 (0.24%), Brent Oil at $80.38 (-1.07%), WTI Oil at $76.03 (-1.85%)
  • Rates : US 10-year yield at 4.501, UK 10-year yield at 4.212, Germany 10-year yield at 2.606

News & Data:

  • (USD) Core PPI m/m 0.0% vs 0.3% expected
  • (USD) Core Retail Sales m/m 0.1% vs -0.1% expected
  • (USD) PPI m/m  -0.5 vs 0.1% expected
  • (USD) Retail Sales m/m  -0.1 vs -0.3 expected

Markets Update:

The Asia-Pacific region witnessed a decline in stock markets, particularly in Hong Kong where the Hang Seng index fell by 1.05%, following a notable 3.92% increase in the previous session. This decline was primarily driven by the drop in Hong Kong-listed shares of Xpeng, a Chinese electric vehicle company, which experienced a 4.2% decrease after reporting wider quarterly losses.

Geopolitical discussions between U.S. President Joe Biden and Chinese President Xi Jinping took place during the Asia-Pacific Economic Cooperation conference outside San Francisco. The meeting aimed to enhance communication between the two nations amid ongoing tensions. South Korea’s stock markets had a delayed opening at 10 a.m. local time to accommodate college entrance exams, resulting in a steady performance for the Kospi while the Kosdaq showed a slight increase of 0.39%.

Japan’s Nikkei 225 saw a 0.20% dip, and the Topix experienced a marginal decrease of 0.08%. Mainland China’s CSI 300 dropped by 0.72%, while Australia’s S&P/ASX 200 fell by 0.67%, closing at 7,058.40.

In the U.S., stocks continued their upward trajectory fueled by positive inflation data. The S&P 500 surged by 0.16%, the Nasdaq Composite saw a slight increase of 0.07%, and the Dow Jones Industrial Average climbed by 0.47%, marking its fourth consecutive session of gains.

Upcoming Events:

  • 1:15 PM GMT – CAD Housing Starts
  • 1:30 PM GMT – USD Unemployment Claims
  • 1:30 PM GMT – USD Philly Fed Manufacturing Index
  • 2:15 PM GMT – USD Industrial Production m/m
  • 3:30 PM GMT – USD Natural Gas Storage