- Asian stock markets edge lower amid the fear of more rates hike, China’s economic woes.
- Evergrande, China’s second-largest real estate company filed for bankruptcy in a US court.
- The Japanese National Consumer Price Index (CPI) for July YoY came in better than expected.
- Market participants will keep an eye on the headlines surrounding China’s debt crisis and real-estate woes.
Asian stock markets trade lower on Friday. A stronger-than-expected US unemployment claims on Thursday indicated a robust labor market, which triggered some follow-through selling on Wall Street. Investors are concerned about the odds of another interest rate rise by the Federal Reserve (Fed) and China’s economic woes.
At press time, China’s Shanghai is down 0.06% to 3,162, the Shenzhen Component Index declines 0.54% to 10,570, and Hong Kong’s Hang Sang dips 1.12% to 18,120. India’s NIFTY 50 declined 0.31%, South Korea’s Kospi falls 0.62%, and Japan’s Nikkei loses 0.63%.
Evergrande, China’s second-largest real estate company filed for bankruptcy in a US court under Chapter 15 on Thursday. This report fuels the fear of a potential Chinese property catastrophe. Earlier this week, the Chinese House Price Index for July decreased to -0.1% from 0% prior. Furthermore, Fitch Ratings might reconsider China's A+ sovereign credit rating in the face of intensifying economic headwinds.
In Japan, the nation’s Statistics Bureau reported on Friday that the National Consumer Price Index (CPI) for July YoY came in at 3.3% against the market expectation of 2.5%. Meanwhile, the National CPI ex Fresh Food YoY matched the market consensus of 3.1%, and the National CPI ex Food, Energy rose to 4.3% figures versus 4.2% prior. This figure remained above the BOJ's inflation objective of 2% for 16 consecutive months. However, investors anticipate that the Bank of Japan (BoJ) would keep policy ultra-loose monetary policy.
Looking ahead, market players will digest the data and monitor the headlines surrounding China’s debt crisis and real-estate woes. In the light day of economic data release, risk sentiment will be the main driver in the market on Friday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
NZD/USD consolidates gains near 0.6200 after RBNZ's hawkish pause, Orr
NZD/USD is consolidating sizeable gains near 0.6200, having spiked to a fresh three-month peak of 0.6209 after the RBNZ left its cash rate unchanged at 5.5% but left the door ajar to further interest rate hikes. RBNZ Governor Orr addresses the press conference.
AUD/USD defends gains around 0.6650 amid mixed Australian data
AUD/USD is trading around 0.6650, defending gains for the fifth consecutive day on Wednesday. Broad US Dollar weakness and mixed Australian data is keeping the pair supported amid cautious optimism. Strong Australian construction output data offset softer monthly inflation pritnt.
Gold rally extends into $2,040 as Fedspeak sparks Fed pivot bets
Gold price climbed on Tuesday in their best single-day performance in over six weeks, climbing 1.5% on the day and settling at a seven-month peak of $2,044. Markets saw a risk rally as investor sentiment bid up assets across the board, sparked by Dovish Fed comments that sent Gold climbing on the day.
Solana price nears $60 after 6% rise in a day as institutions pour millions into SOL
Solana price has consistently impressed investors this past year with continued growth. This sentiment has been shared by institutions as well, who have made SOL their most preferred altcoin.
The Waller effect
Chris Waller expressed confidence on Tuesday that the current policy is well-positioned to slow the economy and bring inflation back to 2%. His remarks were seen by the market as confirmation that the Federal Reserve is done raising interest rates.