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The Asia-Pacific equity markets rebound on Tuesday after two straight days of heavy selling, which were driven largely by US recession fears, disappointing tech earnings and a major unwinding of yen carry trades.
Japan (NKY:IND) +10.23%. In Japan markets rebounded, the Nikkei 225 Index jumped 10.23% to close at 34,675 while the broader Topix Index gained 9.3% to 2,434 on Tuesday after both benchmarks lost over 12% in the previous session in what was the worst drop since Black Monday in 1987. Technology and artificial intelligence-related stocks led the rebound.
Investors also reacted to data showing Japan posted its first rise in real wages in 27 months in June, as nominal wage growth outpaced inflation.
Household spending in Japan shrank in real terms by 1.4% y/y in June 2024, compared with market expectations of a 0.9% fall and after a 1.8% decline in the prior month.
China (SHCOMP) +0.10%. The Shanghai Composite rose on Tuesday, recouping some losses from the previous session, as investors look forward to China’s latest trade and inflation figures this week for insights on the world’s second-largest economy.
Hong Kong (HSI) -0.08%. Hong Kong’s stocks were higher on Tuesday morning session, trying to shake off losses in the prior three sessions amid gains mostly from tech and financials.
India (SENSEX) +0.72%. India’s stocks surged in early deals on Tuesday, after crashing 2.7% a day before due to worries of a potential US recession drove investors away from riskier assets. Traders’ focus turned to the RBI interest rate decision on Thursday, with the market expecting to hold the benchmark policy repo at 6.5% for the ninth straight meeting.
Australia (AS51) +0.41%. The S&P/ASX 200 index rose on Tuesday after the Reserve Bank of Australia kept the cash rate unchanged at 4.35% for the sixth straight meeting, as widely expected. However, the RBA warned that inflation remains too high and is coming down slower than anticipated, keeping the board on alert for upside risks to inflation.
In the U.S., on Monday, all three major indexes experienced a severe sell-off as fears of a US recession intensified.
U.S. stock futures were higher on Tuesday, following Monday’s global rout: Dow +0.56%; S&P 500 +0.97%; Nasdaq +1.17%.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
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(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
