Wednesday 5th August: Asian markets mixed as geopolitical tensions come back on horizon.

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.26%, Shanghai Composite up 0.17%, Hang Seng up 0.51%, ASX down 0.60%
  • Commodities : Gold at $2033.60 (+1.25%), Silver at $26.48 (+1.73%), Brent Oil at $44.74 (+0.70%), WTI Oil at $41.98 (+0.67%)
  • Rates : US 10-year yield at 0.520, UK 10-year yield at 0.075, Germany 10-year yield at -0.554

News & Data:

  • (NZD) Labor Cost Index q/q 0.20% vs 0.40% expected
  • (NZD) Unemployment Rate 4.00% vs 5.60% expected
  • (NZD) Employment Change q/q -0.40% vs -2.00% expected
  • Survey in Japan Predicts Sluggish Spending this Summer Holiday
  • ECB’s Lane Warns of Long Road Back to Normal on Virus Resurgence

Markets Update:

Asian stock markets are mixed on Wednesday after U.S. stocks closed higher overnight in a choppy session. Investors turned cautious amid uncertainty about a new U.S. coronavirus relief package and following reports that the U.S. and China plan to review the implementation of their phase one trade deal in mid-August.

The Nikkei 225 dipped 0.3% in afternoon trade while the Topix index was faintly below the flatline. The moves came after Japanese stocks saw two solid days of gains earlier this week. The Shanghai composite was up 0.2% while the Shenzhen component added 0.8%.

Hong Kong’s Hang Seng index gained 0.5%. Weak Australian economic data and worries about the rising number of coronavirus cases in Victoria also dampened sentiment in Australia, leading the benchmark ASX 200 to trade lower by 0.6%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.131 after declining from levels above 93.6 seen earlier. Crude oil futures settled notably higher on Tuesday, with traders picking up positions ahead of inventory data on hopes of a drop in stockpiles.

Upcoming Events:

  • 12:00 PM GMT – (JPY) BOJ Gov Kuroda Speaks
  • 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI
  • 02:30 PM GMT – (USD) Crude Oil Inventories