Asian Stock Market: Trades mix as Nikkei225 underperforms, DXY subdued, oil rebounds
|- Asian equities are performing mixed as Nikkei225 has tumbled on mixed data.
- A minor correction in the DXY has supported the Asian indices.
- Oil prices have rebounded minutely after a significant correction from $114.00.
Markets in the Asian domain are trading mixed as the Nikkei225 has tumbled on mixed Industrial Production data. Other indices are performing well on subdued performance from the US dollar index (DXY) in the Asian session.
At the press time, China A50 added 1.80%, Hang Seng remained mute, Nifty50 added 0.50% while Japan’s Nikkei225 tumbled 1.52%.
Japan’s indices are underperforming on account of mixed Industrial Production data. The Ministry of Economy, Trade, and Industry from Japan have reported the monthly Industrial Production figure -7.2%, extremely lower vs. -0.3% estimated and the prior release of -1.5%. While the annual figure has improved to -2.8% from the consensus and the former release of -5.9% and -4.9% respectively.
Meanwhile, the US dollar index (DXY) is displaying a subdued performance in the Asian session after a bullish Wednesday. The DXY displayed a firmer upside move after Federal Reserve (Fed) chair Jerome Powell stated that "There are pathways to go back to 2% inflation with a strong labor market; no guarantee." The unavailability of confirmation from Fed Powell on bringing the inflation rate to 2% strengthened the DXY bulls. Going forward, the release of the US core Personal Consumption Expenditure (PCE) Price Index will remain in focus.
On the oil front, the black gold witnessed a steep correction on Wednesday after the comments from central banks in ECB’s annual Forum on Central Banking diminished the growth forecasts. However, a strong rebound has been witnessed in Tokyo.
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