The week ended on a sour note for Asia-Pacific markets as they followed in the footsteps of Wall Street’s overnight tumble, erasing any gains made the day before. Investors across the region were feeling the pinch of global uncertainties.
Japan’s Inflation Data: Mild Relief Amidst Lingering Concerns
In Japan, inflation data for March came in with a headline rate of 2.7%, slightly below February’s 2.8%. The core inflation rate, excluding volatile food prices, held steady at 2.6%, meeting economists’ expectations. While these figures offer some relief, they still remain above the central bank’s target of 2%, signaling the persistence of inflationary pressures.
The Nikkei 225 and Topix indices reacted unfavorably to the data, losing 1.88% and 1.3%, respectively, raising concerns about Japan’s economic recovery.
South Korea: Kospi and Kosdaq Falter
South Korea’s Kospi index, which had led gains in Asia on Thursday, reversed course, dropping 1.8%. The smaller Kosdaq also saw losses, declining by 1.34%. The retreat came after the country’s central bank raised interest rates last week, fueling worries about the impact on business activity.
[Image of a graph showing Asia-Pacific market indices in red descending arrows]
Australia: S&P/ASX 200 Slips
Australia’s S&P/ASX 200 index hovered around 1% lower, reflecting the gloomy sentiment. Miners and energy stocks, which had recently benefited from strong commodity prices, faced selling pressure.
Futures for Hong Kong’s Hang Seng index pointed towards a weaker opening, as the index was expected to fall below its previous close.
Wall Street Recap: S&P 500’s Longest Losing Streak
Overnight on Wall Street, the S&P 500 endured its fifth consecutive day of losses, the longest losing streak since October 2022. The index shed 0.22%, while the Nasdaq Composite fell 0.52%. Concerns about the Federal Reserve’s aggressive monetary tightening path weighed heavily on investor sentiment.
The Dow Jones Industrial Average managed a modest gain of 0.06%, staying marginally above its flatline for the year.
Chip Stocks Under Scrutiny
Traders keep a watchful eye on chip stocks following Taiwanese giant Taiwan Semiconductor Manufacturing Corporation’s (TSMC) impressive performance in the first quarter. The company exceeded both revenue and profit expectations, bolstering hopes for the global chip industry.
Data sourced from: cnbc.com
