Tianqi Lithium plunges in market debut as Asia stocks mostly rise; two central banks raise rates

Key Points

• Shares in the Asia-Pacific were mostly higher on Wednesday ahead of China trade data and central bank decisions in the region.
• Chinese trade data released Wednesday showed a 13.2% increase in yuan-denominated exports for the first half of 2022, while imports rose 4.8%, Reuters reported.
• The Bank of Korea and the Reserve Bank of New Zealand raised rates by 50 basis points on Wednesday.

SINGAPORE — Shares in the Asia-Pacific were mixed on Wednesday as China releases trade data, and the Bank of Korea and Reserve Bank of New Zealand hike rates.

Japan’s Nikkei 225 rose 0.35%, and the Topix index gained 0.24%.

In South Korea, the Kospi advanced 0.83% and the Kosdaq was 0.95% higher.

Hong Kong’s Hang Seng index rose 0.18%.

Tianqi Lithium plunged around 10% at its market debut in Hong Kong from its offer price of 82 Hong Kong dollars ($10.45). It was last at 73.75 Hong Kong dollars.

Miniso shares also dropped in its debut on the Hong Kong market.

Taiwan’s benchmark Taiex jumped more than 3% in morning trade after the finance ministry said it would use its stock stabilization fund to intervene in the market, according to Reuters. The index was last up 2.55%.

The S&P/ASX 200 in Australia was about flat.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.47% higher.

Mainland markets decline

Mainland China markets slipped. The Shanghai Composite shed 0.39% and the Shenzhen Component dropped 0.88%.

Chinese trade data released Wednesday showed a 13.2% increase in yuan-denominated exports for the first half of 2022, while imports rose 4.8%, Reuters reported.

Investors will also be looking ahead to the U.S. inflation report for June.

Sharp weakness in oil prices in July suggests that June may mark a peak [in inflation].

ANZ Research

The Bank of Korea raised rates by 50 basis points for the first time, bringing the rate to 2.25%, Reuters reported. That’s in line with analyst expectations in a Reuters poll. The Korean won stood at 1,305.98 against the greenback.

The Reserve Bank of New Zealand also increased rates by 50 basis points to 2.5%. The currency was at $0.6107.

Thailand’s stock exchange is closed for a holiday Wednesday.

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Major indexes in the U.S. see-sawed during the trading day before closing lower.

The Dow Jones Industrial Average dipped 192.51 points or 0.62% to 30,981.33, while the S&P 500 dropped 0.92% to 3,818.80. The Nasdaq Composite slid 0.95% to close at 11,264.73.

The U.S. will report consumer price index data later Wednesday, and markets are expecting hot inflation, which would keep the Fed firmly on its hiking path.

“Sharp weakness in oil prices in July suggests that June may mark a peak,” ANZ Research said in a note Wednesday. That could mean the most dynamic phase of Fed tightening could end after the central bank raises rates on July 27.

“However, our expectation is that underlying strength in core inflation and still deeply negative real policy rates means 50bps rate rises will still be appropriate after the summer,” the note said.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	26423.11	86.45	0.33
.HSI	Hang Seng Index	*HSI	21020.87	176.13	0.84
.AXJO	S&P/ASX 200	*ASX 200	6600.8	-5.5	-0.08
.SSEC	Shanghai	*SHANGHAI	3286.5	5.03	0.15
.KS11	KOSPI Index	*KOSPI	2337.93	20.17	0.87
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	7945.9	68.53	0.87

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 108.237 after briefly falling below 108.

The Japanese yen changed hands weakened to 137.14 per dollar. The Australian dollar was at $0.6754.

The euro hit parity with the U.S. dollar on Tuesday for the first time in 20 years, with the common currency weakened by Europe’s energy supply concerns and economic troubles, while the safe-haven greenback has been supported by global growth worries.

The euro was last at 1.0025.

Oil futures were little changed in Asia trade. U.S. crude futures and Brent crude were almost flat at $95.85 per barrel and $99.53 per barrel respectively.

Both benchmarks settled more than 7% lower in the previous session.

Source : CNBC