Analytics

Asian markets were mostly higher on Tuesday, rebounding along with US stock index futures after a holiday. MSCI's broadest index of Asia-Pacific shares outside Japan continued to edge up from a more than five-week low hit at the start of the week. Australia's S&P/ASX 200 index climbed 1.41% even as RBA Governor Philip Lowe pointed in a speech to further rate hikes. Japan's benchmark Nikkei 225 finished up 1.84%, while the Shanghai Composite index lost 0.26%, bucking the trend.

Asian equities followed Wall Street lower on Friday as investors continued to weigh the potential impact of rate rises globally. The UK and Switzerland raised interest rates yesterday, adding to concerns that tighter monetary policy could dent global economic growth. The Nikkei 225 in Tokyo fell 1.77%, the Kospi in Seoul retreated 0.43%, and Sydney’s S&P-ASX 200 tumbled 1.76%. Bucking the trend, the Shanghai Composite in China gained nearly 1% while Hong Kong’s Hang Seng added 1.15%.

Following a major sell-off on Wall Street, Asian equity markets fell sharply on Tuesday on rising fears aggressive US interest rate hikes would push the economy into recession. MSCI's broadest index of Asia-Pacific shares outside Japan gave up nearly 1%. The Nikkei 225 in Tokyo fell 1.32% after the data showed Japan’s April final industrial production came in at -1.5% versus the preliminary estimate of -1.3% m/m. Bucking the trend, China’s Shanghai Composite recovered from earlier losses to gain 1%.

Asian equity markets were mostly under pressure on Thursday, further weighed by persistent uncertainty over the economic outlook. China’s Shanghai Composite was down 0.76% on the news that Shanghai will lock down a district in the south west to conduct a mass Covid-19 testing drive. On the positive side, Japan’s Nikkei 225 finished just above the flat-line, while the yen extended losses to fresh twenty-year lows versus the dollar before turning positive on the day.

Asian equities climbed on Wednesday, shrugging off the news that the Word Bank has lowered 2022 global GDP forecast to 2.9% from the January’s estimate of 4.1%, citing risks of stagflation, developments surrounding Ukraine and China lockdowns. The Nikkei 225 in Tokyo gained 1% after the data showed that the Japanese economy contracted less than expected in the first quarter. Hong Kong’s Hang Seng advanced 2.19% while China’s Shanghai Composite was up 0.68%.

Asian markets were mostly higher on Monday, with the Shanghai Composite index in China gaining 1.28% after the data showed that PMI Caixin for services improved to 41.4 from April's 36.2. In Hong Kong, PMI for May hit its highest since March 2011. Also, investors cheered the news that Shanghai and Beijing are incrementally relaxing restrictions as the COVID outbreak in China keeps dissipating. Bucking the trend, Sydney's S&P-ASX 200 shed 0.45% after Australian monthly inflation gauge came in at +1.1% m/m versus -0.1% prior.

Following gains on Wall Street, Asian stock markets advanced ahead of a key US jobs report on Friday. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.45%. Japan's Nikkei 225 was up 1.27% after the data showed that service sector activity grew at its fastest pace in six months in May. South Korea’s Kospi gained 0.44% even as headline and core inflation rates hit highs not seen in over a decade. Markets are shut in Hong Kong and China.

Asian equity markets were mostly lower on Thursday, with investors staying cautious these days amid growing economic risks. Japan’s Nikkei 225 edged down 0.16%, South Korea’s Kospi fell 1.00%, and Australia’s S&P/ASX 200 lost 0.80% after the data showed that exports grew 1%, while imports contracted 1% in April. Bucking the trend, China’s Shanghai Composite climbed 0.42% after Fitch affirmed China’s ratings at 'A+' with stable outlook. The agency expects activity to recover in the second half of this year.

Asian stock markets were mixed on Tuesday as risk-on tone started to abate after positive start to the week. China’s Shanghai Composite was up 1.19% after the Cabinet issued a series of policies to bolster economic stability. On the data front, May’s manufacturing and service PMIs came in higher than expected but stayed in contraction territory.

Asian equities were mixed on Wednesday, mostly shrugging off weakness on Wall Street. The Shanghai Composite Index advanced 1.19% while the Nikkei 225 in Tokyo shed 0.26%. The Hang Seng in Hong Kong reversed early losses to gain 0.58% and Sydney’s S&P-ASX 200 gained 0.37%. New Zealand stocks declined after the Reserve Bank of New Zealand announced a 50 basis points rate hike.

Asian equities struggled for direction on Monday. Markets were spooked by the news that Beijing has reported a record number of Covid cases during its current outbreak. On the positive side, US president Biden said that China trade tariffs may be under consideration for being reduced. MSCI’s broadest index of Asia-Pacific shares outside Japan finished flat along with China’s Shanghai Composite. In Japan, the Nikkei 225 gained nearly 1%.