Asia-Pacific markets mixed after sharp falls in previous session

Soegeefx AppsAsia MarketAsia-Pacific markets mixed after sharp falls in previous session

Shares in the Asia-Pacific were mixed on Tuesday after sharp falls to start the week following Fed Chair Jerome Powell’s hawkish speech in Jackson Hole.

Japan’s Nikkei 225 rose 0.87% and the Topix index gained 1%.

The in South Korea Kospi added 0.3% and the Kosdaq increased 0.85%. In Australia, the S&P/ASX 200 was 0.45% higher.

Hong Kong’s Hang Seng Index declined 1.52% with the Hang Seng Tech Index trading 2.3% lower, while mainland China markets were mixed. The Shanghai Composite was fractionally higher, and the Shenzhen Component shed 0.246% at the open.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.37% lower.

.N225 Nikkei 225 Index *NIKKEI 28130.43 251.47 0.9
.HSI Hang Seng Index *HSI 19650.06 -373.16 -1.86
.AXJO S&P/ASX 200 *ASX 200 6999.5 34 0.49
.SSEC Shanghai *SHANGHAI 3227.61 -13.12 -0.4
.KS11 KOSPI Index *KOSPI 2436.98 10.09 0.42
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7923.86 -35.66 -0.45

Overnight in the U.S., the S&P 500 shed 0.67% to 4,030.61, and the Nasdaq Composite lost 1.02% to 12,017.67.

The Dow Industrial Average dipped 184.41 points, or 0.57%, to 32,098.99. The Dow fell more than 300 points earlier in the session and briefly rose at one point. U.S. futures inched upward following a second-straight decline for the major averages.

“It seems investors are still digesting the consequences from Fed Chair [Powell’s] hawkish speech where he not only refuted the notion of a dovish pivot but emphasized the need for rates to head higher and remain restrictive in order to bring inflation to heel,” Rodrigo Catril, a strategist at National Australia Bank, wrote in Tuesday note.

Japan’s July jobless rate flat, economist says improvement could be stalled

Japan’s jobless rate was unchanged at 2.6% in July, in line with expectations and flat for the third consecutive month, according to official data.

Economist Marcel Thieliant at Capital Economics told CNBC’s “Squawk Box Asia” that the country has a huge shortfall in face-to-face services employment compared to pre-Covid levels.

He added data suggests consumption has been affected, pointing to the recent spike in virus cases in the nation.

“That would result in the stalling of the improvement in the labor market and today’s stagnation in the in the unemployment rates is consistent with that,” he said.

— Abigail Ng

CNBC Pro: Strategist reveals why this FAANG stock is a safe bet heading into September

Strategist says inflation’s coming down and this tech stock could do ‘very well’

A “seasonally weak” period for equities is just around the corner, and that could mean more volatility for stock markets.

But King Lip, chief strategist at BakerAvenue Wealth Management, believes one FAANG stock could be a safe bet.

— Zavier Ong

Honda, LG Energy Solution stocks rise after EV battery plant announcement

Shares of Honda Motor and LG Energy Solution rose at the open following an announcement that the two companies plan to build a $4.4 billion battery plant in the U.S.

Honda Motors traded 1.7% higher in Tokyo and LG Energy Solution rose 3.4% in Seoul in Tuesday’s morning session.

A slew of companies, including Panasonic and Stellantis, have recently announced plans to invest in American production of battery cells for electric vehicles. The facility is set to start mass producing advanced lithium-ion battery cells by the end of 2025.

—Jihye Lee

CNBC Pro: Analyst names the stocks ‘at risk of going to $0’ and 3 top picks, giving one over 80% upside

Stocks burning through cash are about to get hit, says David Trainer, CEO of investment research firm New Constructs.

That’s because interest rates are going to get even higher, which means liquidity will start to dry up, he explained

He tells investors to avoid “zombie” stocks and identifies stronger bets.

— Weizhen Tan

Oil prices rebounding in late August

After falling for much of July and August, the price of oil is starting to make a comeback.

Oil prices settled up more than 4% on Monday, and futures for U.S. benchmark West Texas Intermediate crude is now trading above $96 per barrel again.

The volatility in oil prices reflects uncertainty about supply, with the Russia invasion of Ukraine ongoing and OPEC+ considering output cuts, and demand, with growing concerns about a global recession.

Lower oil prices were also a major reason for cooler inflation readings for the U.S. in recent weeks.

— Jesse Pound

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