Nikkei’s Record Levels and Slight Retreat
pawel.gaul
Japan’s Nikkei Index (-0.08%) and the broader Topix set new record levels before experiencing a slight pullback. The index of coincident economic indicators in Japan, reflecting factors such as factory output, employment, and retail sales, soared to 116.5 in May 2024.
Market Movement Across Asia
China saw its mainland stocks under intense selling pressure, leading to a decrease of 0.22%. Meanwhile, Hong Kong ended a four-session winning streak with all sectors in decline. Investors are eagerly anticipating key Chinese data, including CPI, PPI numbers for June, and new yuan loans scheduled for release next week.
Retail sales in Singapore climbed by 2.2% year-on-year in May 2024. Indonesia’s foreign exchange reserves also witnessed an increase, reaching $140.2 billion in June 2024.
The Indian SENSEX dropped by 0.27% after two consecutive sessions of gains, primarily driven by losses in the banking and financial services sector. In Australia, the market retracted by 0.20% from the previous day as investors grew cautious ahead of an important US jobs report that could impact Federal Reserve interest rate decisions.
Looking ahead, the New Zealand market is gearing up for the Reserve Bank of New Zealand’s policy meeting next week. The central bank is expected to maintain its 5.5% interest rates and adopt a guarded approach.
Global Trends and Bitcoin Plunge
With US markets closed on the occasion of Independence Day, trading activity was subdued. Bitcoin faced a significant dip below $55,000, reaching its lowest point since late February. The cryptocurrency experienced a 13% loss throughout the week, attributed to leveraged investors liquidating their positions.
Currencies of particular interest: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
