{"id":64791,"date":"2023-08-03T18:08:54","date_gmt":"2023-08-03T08:08:54","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=64791"},"modified":"2025-11-11T15:39:58","modified_gmt":"2025-11-11T04:39:58","slug":"thursday-3rd-aug-2023-asia-pacific-markets-react-to-wall-street-sell-off-after-us-credit-rating-downgrade","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/thursday-3rd-aug-2023-asia-pacific-markets-react-to-wall-street-sell-off-after-us-credit-rating-downgrade\/","title":{"rendered":"Thursday 3rd Aug 2023: Asia-Pacific Markets React to Wall Street Sell-Off After US Credit Rating Downgrade"},"content":{"rendered":"\n<h3><br \/><br \/><br \/>Global Markets:<\/h3>\n\n\n\n<ul>\n<li>&nbsp;Asian Stock Markets : Nikkei down 1.68%, Shanghai Composite up 0.58%, Hang Seng down 0.67%, ASX down 0.58%<\/li>\n\n\n\n<li>Commodities : Gold at $1972.52 (-0.17%), Silver at $23.70 (-0.74%), Brent Oil at $82.50 (-0.84%), WTI Oil at $78.78 (-0.78%)<\/li>\n\n\n\n<li>Rates : US 10-year yield at 4.152, UK 10-year yield at 4.4845, Germany 10-year yield at 2.5405<\/li>\n<\/ul>\n\n\n\n<h3>News &amp; Data:<\/h3>\n\n\n\n<ul>\n<li>(USD) ADP Non-Farm Employment Change 324K vs 191K expected<\/li>\n\n\n\n<li>(USD) Crude Oil Inventories -17.0M vs -0.9M expected<\/li>\n<\/ul>\n\n\n\n<h3>Markets Update:<\/h3>\n\n\n\n<p>Asia-Pacific markets displayed a mixed performance on Thursday, reacting to Wall Street&#8217;s sell-off triggered by the downgrade of the United States&#8217; long-term credit rating from AAA to AA+ by ratings agency Fitch. In Hong Kong, the Hang Seng index experienced a decline of 0.67% during its final hour of trading. However, mainland Chinese markets managed to reverse their earlier losses. The Shanghai Composite closed on a positive note, rising by 0.58% to reach 3,280.46, and the Shenzhen Component rebounded by 0.53%, closing at 11,163.42. Adding to the positive sentiment, China&#8217;s Caixin survey for the services sector revealed a stronger expansion in July compared to June.<\/p>\n\n\n\n<p>In contrast, Japan&#8217;s markets took a substantial hit, with the Nikkei 225 falling by 1.68%, marking the steepest decline in the region and concluding at 32,159.28. The Topix also suffered losses, ending 1.45% lower at 2,268.35. Investor sentiment was adversely affected by the downgrade of the US credit rating and the sell-off in Wall Street, leading to risk aversion in the Japanese markets.<\/p>\n\n\n\n<p>South Korea&#8217;s markets showed mixed results, with the Kospi falling 0.42% to finish the day at 2,605.39, while the Kosdaq rose 1.16% and closed at 920.32. Notably, South Korean internet giant Kakao faced a setback as its second-quarter net profit plummeted by 44%, leading to an initial slide in its shares, although they managed to recover some ground later in the day. This volatility in the South Korean markets reflected investors&#8217; uncertainty and cautiousness amid the global economic developments.<\/p>\n\n\n\n<p>In Australia, the S&amp;P\/ASX 200 slid 0.58%, closing at 7,311.8. The country&#8217;s June trade balance exceeded expectations, contributing to the market&#8217;s performance. Despite this positive economic indicator, the overall sentiment in the Asia-Pacific region was impacted by the negative cues from the US markets. Overnight in the US, all three major indexes lost ground, with the Nasdaq Composite witnessing a significant tumble of 2.17%, marking its worst day since February. The S&amp;P 500 pulled back by 1.38%, and the Dow Jones Industrial Average slid 0.98%. These events set the tone for the day in the Asia-Pacific markets and underscored the interconnectedness of global financial markets in today&#8217;s interconnected world.<\/p>\n\n\n\n<h3>Upcoming Events:&nbsp;<\/h3>\n\n\n\n<ul>\n<li>11:00 AM GMT &#8211; GBP BOE Monetary Policy Report<\/li>\n\n\n\n<li>11:00 AM GMT &#8211; GBP MPC Official Bank Rate Votes<\/li>\n\n\n\n<li>11:00 AM GMT &#8211; GBP Monetary Policy Summary<\/li>\n\n\n\n<li>11:00 AM GMT &#8211; GBP Prelim Flash GDP q\/q<\/li>\n\n\n\n<li>11:30 AM GMT &#8211; GBP Official Bank Rate<\/li>\n\n\n\n<li>12:30 PM GMT &#8211; USD Unemployment Claims<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: News &amp; Data: Markets Update: Asia-Pacific markets displayed a [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":79815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[196,215,339],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/64791"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=64791"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/64791\/revisions"}],"predecessor-version":[{"id":64810,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/64791\/revisions\/64810"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/79815"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=64791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=64791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=64791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}