Asian markets showed varied trends on Wednesday following fresh record highs on Wall Street and indications from Federal Reserve Chair Jerome Powell suggesting potential interest rate cuts later this year, though without specifying timing.
While the S&P 500 and Nasdaq in the US reached new peaks, Europe’s main stock markets were dampened by political uncertainties in France on Tuesday.
Powell’s Senate testimony highlighted “modest” progress in curbing inflation, with analysts anticipating rate cuts starting in September and possibly a second by year-end. Despite Powell’s somewhat dovish tone, markets had already priced in expectations of nearly two rate cuts for the year.
Investor focus remains on US consumer inflation data due Thursday, seen as crucial in assessing ongoing price trends.
In Asia, Hong Kong stocks initially rose but later fell, while Shanghai closed lower alongside declines in Sydney, Mumbai, and Manila. China’s June consumer prices rose 0.2 percent year-on-year, below expectations, reflecting moderate price growth compared to global peers experiencing sharper increases.
Tokyo’s Nikkei 225 surged to an all-time high, contrasting with flat performances in Seoul and gains in Taipei, Wellington, Bangkok, Singapore, Jakarta, and Kuala Lumpur.
In European trading, London, Frankfurt, and Paris opened higher.
Key figures around 0710 GMT included:
- Tokyo – Nikkei 225: Up 0.6% at 41,831.99 (close)
- Hong Kong – Hang Seng Index: Down 0.1% at 17,504.36
- Shanghai – Composite: Down 0.7% at 2,939.36 (close)
- London – FTSE 100: Up 0.3% at 8,160.64
Currency markets saw minor fluctuations, with the Euro slightly up against the dollar, while oil prices, Brent North Sea Crude and West Texas Intermediate, showed slight declines.
Overall, market movements reflected cautious optimism amid global economic signals and central bank policy expectations, with ongoing attention to upcoming economic data and geopolitical developments.
