Friday 29th September 2023: Asia-Pacific Markets Rally, Tokyo’s Inflation Softens, and U.S. Stocks Surge

Global Markets:

  •  Asian Stock Markets : Nikkei down 0.03, Shanghai Composite Closed, Hang Seng up 2.71%, ASX up 0.34%
  • Commodities : Gold at $1888.65 (0.55%), Silver at $22.29 (2.31%), Brent Oil at $93.13 (0.07%), WTI Oil at $91.94 (+0.26%)
  • Rates : US 10-year yield at 4.542, UK 10-year yield at 4.480, Germany 10-year yield at 2.855

News & Data:

  • (USD) Final GDP q/q 2.1% vs 2.2% expected
  • (USD) Unemployment Claims 204K vs 214K expected

Markets Update:

Asia-Pacific markets closed the week on a positive note, led by Hong Kong’s Hang Seng index, which surged by an impressive 2.7% during the final trading hours. Traders closely scrutinized vital economic data emerging from Japan, particularly Tokyo’s September inflation rate, considered a harbinger for the entire nation’s economic trends. Tokyo’s consumer price index rose by 2.8% year-on-year in September, showing a slight softening from the 2.9% increase witnessed in August. Furthermore, the core inflation rate, excluding fresh food prices, settled at 2.5%, falling short of the 2.6% consensus projected by a Reuters poll.

In contrast, Japan’s Nikkei 225 experienced marginal losses, concluding at 31,857.62 points, while Australia’s S&P/ASX 200 rebounded with a 0.34% gain, marking a recovery following a three-day downward trend.

Notably, South Korean and mainland Chinese markets remained closed for a holiday.

Meanwhile, in the United States, all major stock indexes rallied as investors eagerly anticipated the release of the U.S. personal consumption expenditures price index, regarded as the Federal Reserve’s preferred inflation gauge. Concurrently, Wall Street kept a close watch on the ongoing negotiations among lawmakers regarding a U.S. spending bill, with the government facing a potential shutdown deadline of October 1. The Dow Jones Industrial Average climbed by 0.35%, the S&P 500 added 0.59%, and the Nasdaq Composite surged by approximately 0.83%, capping off the trading day on a positive note.

Upcoming Events: 

  • 12:30 PM GMT – USD GDP m/m
  • 12:30 PM GMT – USD Core PCE Price Index m/m
  • 2:00 PM GMT – USD Revised UoM Consumer Sentiment