Monday 19th August 2024: Asian markets mixed as investors await central bank decisions

Global Markets:

•  Asian Stock Markets : Nikkei down 2.00%, Shanghai Composite up 0.45%, Hang Seng up 0.89% ASX up 0.10%
• Commodities : Gold at $2540.35 (0.09%), Silver at $28.99 (0.51%), Brent Oil at $79.38 (-0.39%), WTI Oil at $75.22 (-0.42%)
• Rates : US 10-year yield at 3.878, UK 10-year yield at 3.930, Germany 10-year yield at 2.258

News & Data:

• (CAD) Manufacturing Sales m/m  -2.1% vs -2.3% expected
• (USD) Building Permits  1.40M vs 1.43M expected
• (USD) Housing Starts  1.24M vs 1.34M expected

Markets Update:

Asia-Pacific markets showed mixed results on Monday following a strong rally in stocks the previous week. Investors are now anticipating key central bank announcements and inflation data. The Bank of Korea is set to reveal its interest rate decision on Thursday, while inflation figures from Japan and Singapore are expected on Friday. China will announce its one- and five-year loan prime rates on Tuesday.

Japan’s Nikkei 225 dropped by 2%, with the broader Topix declining 0.75%, potentially ending a five-day winning streak. Japan’s core machinery orders unexpectedly fell by 1.7% in June, contrary to economists’ forecasts of a 1.8% increase, signaling potential concerns about capital expenditure.

In a separate development, Reuters reported that Japan’s national and Tokyo governments aim for a 700 billion yen ($4.7 billion) valuation for Tokyo Metro, with plans to list the subway operator by the end of October. Half of the company’s shares are expected to be sold in the initial public offering, potentially marking Japan’s largest IPO since 2018.

South Korea’s Kospi edged down by 0.27%, and the Kosdaq fell by 0.44%. Conversely, Hong Kong’s Hang Seng index rose by nearly 1%, and the CSI 300 increased by 0.41%. In Australia, the S&P/ASX 200 saw a slight gain of 0.1%.

In the U.S. on Friday, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all recorded modest gains, capping off a week of positive performance.

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