- Indices in the Asia-Pacific region were mostly down in Friday’s trading session. Japan’s Nikkei lost nearly 0.52%, Australia’s S&P/ASX 200 fell 0.20% and Chinese futures rose 0.2%.
- Asian markets showed volatility on Friday amid lackluster results from US technology companies and strong signs in the labor market that could lead to another rate hike in 2023.
- Major Asian indexes were almost flat, with Japanese and Chinese shares fluctuating. The MSCI Asia Pacific index fell for the fifth day in a row. U.S. stock futures traded in a tight range after the Nasdaq 100 fell for the first time in more than five months on Thursday.
- Declines in U.S. markets could disrupt this year’s massive gains, with the S&P 500 up 18% and the Nasdaq 100 up 41%, despite a fragile economic outlook and tough Federal Reserve action.
- Chinese investors are looking for new government support measures.
- More cautious and balanced policy actions could prolong the decision-making process, potentially putting further pressure on corporate earnings in the next two quarters.
- The offshore yuan was little changed on Friday following a higher-than-expected peg by the People’s Bank of China (PBoC). The yuan rose on Thursday after more support from the central bank.
- The artificial intelligence boom is leading to a rebalancing of the index from July 24, potentially reducing weightings in shares of Amazon, Nvidia and Microsoft, which could put downward pressure on passive fund adjustments.
- Inflation in Japan reached 3.3% nationally, against a forecast of 3.2% and an earlier figure of 3.2%.
- Japan’s one-year core inflation rate remains steady at 3.3% as expected, slightly higher than the previous figure of 3.2%.
USDJPY is again trading around 140 points. After today’s rise in inflation, the Japanese currency does not seem to be reacting significantly. Despite higher-than-expected inflation, raising the possibility of action by the Bank of Japan (BoJ).
“This material is marketing communication in accordance with Article 24, paragraph 3, of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). The marketing communication does not mean that an investment recommendation or recommendation of an investment in no. European Parliament and Council no. 0 14 of 16 April 2014 on market abuse (the market abuse regulation) and on the repeal of Directive 2003/6/EC of the European Parliament and of the Council and Directives 2003/124/EC, 2003/125/EC and 2004/72/EC of the Commission, 5 March 2004 and 2004/72/EC. 6, which supplements the European Parliament and Council Regulation (EU) No. 596/2014 with regard to regulatory technical standards regarding the technical arrangements for the objective presentation of investment recommendations or other information recommending or proposing an investment strategy, and for the disclosure of special interests or indications of conflicts of interest or any other advice, including within the investment legislation of July 2000, on financial advice pursuant to 20. (i.e. Journal of Laws 2019, item 875, as amended). All information, analysis and training provided is provided for informational purposes only and should not be construed as advice, a recommendation, an investment solicitation or an invitation to buy or sell financial products. XTB cannot be held responsible for its use and the resulting consequences, as the end investor remains the sole decision-maker regarding the position of his XTB trading account. Any use of said information, and in this regard any decision made in connection with any purchase or sale of CFDs, is the sole responsibility of the end investor. Reproduction or distribution of all or part of this information for commercial or private purposes is strictly prohibited. Past results are not necessarily indicative of future results and anyone acting on this information does so entirely at their own risk. CFDs are complex instruments and have a high risk of quickly losing capital due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You need to make sure you understand how CFDs work and can afford to take the likely risk of losing your money. With the limited risk account, the risk of loss is limited to the invested capital.