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The Asia-Pacific equity markets were mixed on Thursday, weighed by a rapid drop on Wall Street overnight after weak demand for the 10-year US bond auction pushed yields higher, while investors assessed trade data from Japan and India’s rate decision.
Japan (NKY:IND) -0.54%. The Nikkei 225 Index dropped on Thursday, breaking a two-day advance. The Japanese yen steadied around 146.5 per dollar on Thursday, as investors continued to assess the outlook for Bank of Japan monetary policy.
The summary of opinions from the Bank of Japan’s policy meeting in July also revealed that some members had proposed more rate hikes.
Japan’s current account surplus increased to JPY 1,533.5 billion in June 2024 from JPY 1,519.4 billion in the same month a year earlier, compared with market expectations for a gain of JPY 1,790 billion.
The gauge for Japan’s service sector increased to 47.5 in July 2024 from 47.0 in the previous month, compared with market forecasts of 47.8.
China (SHCOMP) +0.04%. The Shanghai Composite slides back toward six-month lows as economic and policy uncertainties in China continued to weigh on investor confidence.
Investors now look forward to the latest domestic inflation figures for further insights on the economy.
Hong Kong (HSI) +0.16%.
India (SENSEX) -0.38%. The equity market in India fell in morning trade on Thursday, halting gains in the previous day, with Nifty 50 shrinking below 24,250 after the RBI kept its benchmark policy rate at 6.5% for the ninth consecutive meeting amid persistent food price pressures.
Australia (AS51) -0.31%. The S&P/ASX 200 Index fell on Thursday, snapping two straight days of gains, with mining stocks leading the market lower amid weaker metals prices, and after Reserve Bank of Australia Governor Michele Bullock said the central bank will not hesitate to raise interest rates again to combat inflation.
In the U.S., on Wednesday, all three major indexes ended lower as the market failed to extend its Tuesday recovery following Monday’s selloff, after a weak US Treasury auction pushed yields higher.
New jobless claims data will be released later today, with traders watching for signs of labor market weakness following last week’s disappointing July payrolls report.
U.S. stock futures declined further on Thursday after the major averages failed to sustain a comeback in the previous session: Dow -0.07%; S&P 500 -0.16%; Nasdaq -0.10%.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).