Asian Stock Market: Trades mixed as Inflation fears cools down
|- Asia-Pacific indices are trading mixed on calmer market volatility.
- Fed comments on inflation as transitory undermine the demand for the US dollar.
- Mixed economic data in Japan and Australia weigh on the performance of the shares.
Asian stock market trades on a mixed note diverging from its Wall street counterpart. The Fed Chair Jerome Powell comments on inflation and monetary policy stance soothes market volatility.
MSCI'S broadest index of Asia-pacific shares outside Japan traded 0.73% higher.
Japan’s Nikkei 225 rose 0.16%, while the Topix index edged lower to 0.29%.
The Bank of Japan (BOJ) released its Minutes of Meeting from the latest monthly meeting, which revealed the policymakers are looking for economic growth, despite rising inflation pressure.
The PMI data came at a mixed rate. The Jubun Bank Manufacturing PMI fell to 51.5 in June from 53.0 in the previous month. The Jibun Bank Service PMI rose to 47.2 in June, higher from the previous month’s reading at 46.5.
Hong Kong’s Hang Seng index gained 1.46%, Taiwan’s Taiex rose 1.22%.
China’s Shanghai Composite advanced 0.46%, South Korea’s Kospi edged higher at 0.39%.
Australia’s ASX 200 lost 0.41% as the country posted a decline in the IHS Markit Composite PMI, which fell to 56.1 in June from 58.0 in the previous month. The IHS Manufacturing PMI also decreased from 60.4 to 58,4 in June.
In the latest development, China’s longest serving envoy Cui Tiankai would be leaving the US after eight years. As the official believed that the US-China relations are at a “ crossroads”. The sentiment turn slightly negative following the news.
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