Monday 18th September 2023: Asia-Pacific Markets React to Central Bank Decisions in a Volatile Week

Global Markets:

  •  Asian Stock Markets : Nikkei Closed, Shanghai Composite up 0.28%, Hang Seng down 1.39%, ASX down 0.67%
  • Commodities : Gold at $1949.45 (0.23%), Silver at $23.40 (0.05%), Brent Oil at $94.61 (0.87%), WTI Oil at $90.85 (0.90%)
  • Rates : US 10-year yield at 4.346, UK 10-year yield at 4.398, Germany 10-year yield at 2.687

News & Data:

  • (USD) Empire State Manufacturing Index 1.9 vs -9.9 expected
  • (USD) Import Prices m/m 0.5% vs 0.3% expected
  • (USD) Industrial Production m/m  0.4 vs 0.1 expected

Markets Update:

Asian-Pacific markets experienced a decline on Monday as investors anticipated a week filled with central bank decisions. The U.S. Federal Reserve is set to announce its decision early on Thursday in the Asian timezone, and on Tuesday, Australia’s central bank will unveil the minutes from its September 5th policy meeting.

Meanwhile, on Friday, the Bank of Japan will conclude its monetary policy meeting, with traders eagerly awaiting insights into when the BOJ intends to begin transitioning away from its ultra-easy monetary policy. Additionally, the People’s Bank of China is expected to disclose its loan prime rate decisions on Friday.

In Australia, the S&P/ASX 200 commenced the week with a 0.67% decline, closing at 7,230.4 points. South Korea’s Kospi also experienced a 0.92% dip, while the Kosdaq saw a 0.71% slump. Hong Kong’s Hang Seng index followed suit with a 1.39% drop, but mainland Chinese markets defied the broader trend, with the CSI 300 index gaining 0.43%. Notably, Japan’s markets remained closed for a public holiday.

In the United States, the preceding Friday witnessed a decrease across all three major indexes. The Dow Jones Industrial Average saw a decline of 0.83%, the S&P 500 dropped by 1.22%, and the Nasdaq Composite experienced a 1.56% decrease.

Upcoming Events: 

  • 12:15 PM GMT – CAD Housing Starts
  • 12:30 PM GMT – CAD IPPI m/m
  • 12:30 PM GMT – CAD RMPI m/m
  • 2:00 PM GMT – USD NAHB Housing Market Index