Analytics

Asian equities were under pressure as risk sentiment remained downbeat amid persisting weakness in technology stocks after chipmaking giant TSMC presented a pessimistic outlook for the year. Against this backdrop, investors ignored a move by China’s National Development and Reform Commission that unveiled new steps aimed at boosting spending in the automobile and consumer electronics sectors. Still, the pressure in the regional market was limited. The Shanghai Composite index traded sideways most of the session to finish just 0.06% lower.

Asian equities were mostly higher on Friday as investors cheered signs of cooling US inflation. However, gains were limited as market participants are now turning focus to upcoming key GDP data out of China due next week. Still, regional equities saw their best week this year amid speculation that the Federal Reserve could pause rate hikes after this month. MSCI's broadest index of Asia-Pacific shares added 0.7% during the session to notch a 5.4% weekly advance. Hong Kong's Hang Seng gained 0.52% and South Korea's Kospi jumped 1%.

Asian equities were pressured by weak Chinese economic data on Friday. Manufacturing activity contracted for a third straight month in June while also posting its weakest non-manufacturing PMI reading this year. The official manufacturing PMI came in at 49.0 in June — compared to 48.8 in May. Still, the Shanghai Composite added 0.62% during the session. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.21%.

US markets were closed for the Juneteenth holiday. Asian shares fell on Tuesday even as the People’s Bank of China cut two more key lending rates for the first time in ten months. The central bank trimmed its benchmark loan prime rate by 10 basis points across the board, highlighting a slowing economic rebound in China. As such, the Shanghai Composite edged down 0.39% during the session. MSCI's broadest index of Asia-Pacific shares outside Japan gave up 0.69% while Japan’s benchmark Nikkei 225 added 0.06%.

Wall Street stocks finished mixed-to-lower on Wednesday as investors were surprised by the Bank of Canada’s unexpected interest rate hike after a four-month pause. The central bank had been on hold since January. Now, money markets see more than a 60% chance of another rate hike next month. A day earlier, the Reserve Bank has lifted interest rates for a 12th time in just over a year, citing the risk of inflation staying too high for too long.

Asian equities followed US counterparts higher as Federal Reserve officials reignited hopes another interest rate hike might be postponed after fresh data showed US manufacturing and retail activity weakening. The Shanghai Composite Index gained 0.8% and the Nikkei 225 in Tokyo added 1.2%. The Hang Seng in Hong Kong surged 4% to erase losses seen earlier in the week in the aftermath of dismal economic data out of China. The Kospi in Seoul rose 1.1% and the S&P ASX 200 in Sydney was 0.48% higher.

Following mixed session on Wall Street, Asian stocks looked indecisive amid debt-ceiling uncertainty to give up early gains and finish well off two-week highs. More talks in Washington on government debt ended with no deal to avoid a default. Now, investors shift their focus towards the release of Fed minutes on Wednesday from the May meeting that could set further direction for stocks this week ahead of Friday’s retail sales report.

Following a bearish session on Wall Street, Asian equities fell ahead of US consumer price data that will feed into the Federal Reserve’s policy decisions. Headline inflation is forecast to increase 5% from a year ago. MSCI's broadest index of Asia-Pacific shares outside Japan gave up 0.3%, with technology stocks leading the decline. China’s Shanghai Composite index fell 1.2%, still digesting weaker-than-expected import data that fueled fears that an economic rebound in the country was waning as the economy reemerges from anti-COVID measures.

While Wall Street markets finished lower Wednesday to notch a three-day losing streak after the Federal Reserve raised rates by 25 basis points, Asian markets shrugged off the Fed decision and finished mixed-to-positive on Thursday. Hang Seng in Hong Kong post solid gains of around 1.5%, driven by commerce and industry stocks.

Wall Street stocks ended little changed overnight as investors cautiously digested fresh corporate earnings. The S&P 500 was unchanged at the close, while the Dow Jones Industrial Average gave up 0.23%. The technology-heavy Nasdaq Composite ended the trading session just above the flatline. Morgan Stanley reported that its first-quarter profit fell. Still, its shares were up near 0.7% to notch the seventh bullish session in a row. Elsewhere, the Fed's Beige Book survey showed that inflation and hiring slowed across the 12 Fed districts.