Asian stock markets showed a mixed trend on Monday as investors await the upcoming meeting of the Federal Reserve. Wall Street wrapped up its best week since November with a slight increase in U.S. stocks on Friday, setting a positive tone for the week ahead.
U.S. futures were on the rise, but oil prices experienced a slight drop. In Japan, the benchmark Nikkei 225 index fluctuated in morning trading and stood at 38,047.17 points. The core machinery orders in Japan fell 1.7% year-on-year in June, indicating a potential slowdown in capital spending in the coming months.
Last week’s better-than-expected U.S. retail sales figures boosted market confidence and raised expectations regarding possible interest rate cuts by the Federal Reserve in September. This could impact the value of the yen against the dollar and other major currencies. Despite recent fluctuations, the dollar-yen exchange rate has been on a downward trend in recent weeks.
Market analysts are closely watching the upcoming speech by Federal Reserve Chair Jerome Powell at Jackson Hole, Wyoming, later this week. Powell’s remarks could provide insights into the Fed’s future monetary policy decisions amid mixed economic data reports.
In the broader Asian market, Australia’s S&P/ASX 200 index rose 0.2%, while Seoul’s Kospi index declined by 0.2%. Hong Kong’s Hang Seng index added 1%, and the Shanghai Composite index was up by 0.5%. Bangkok’s SET index also increased by 0.8% driven by positive GDP growth in the second quarter.
On Friday, the S&P 500 index rose by 0.2%, extending its winning streak for the seventh consecutive session. Meanwhile, the Dow Jones Industrial Average and the Nasdaq composite index also posted modest gains.
The bond market experienced some volatility following mixed reports on the U.S. economy, including data on homebuilding and consumer sentiment. Expectations of an interest rate cut by the Fed in September are fueling optimism among investors despite concerns about a potential economic slowdown.
In energy trading, benchmark U.S. crude and Brent crude prices showed a slight decline. The euro strengthened against the U.S. dollar, reflecting market sentiment towards major currency pairs.
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