Asia-Pacific stock markets were mixed on Thursday as major US stock indices fell on reflection of fresh trade data from Japan and an upcoming interest rate decision by the Reserve Bank of India.
The U.S. stock market witnessed declines on Wednesday with the Dow Jones Industrial Average down 0.60%, the S&P 500 down 0.77% and the Nasdaq Composite down 1.05% despite early gains. This shift came as Nvidia, among other major technology companies, saw a downturn.
Earlier in the week, global financial markets had already faced pressure from an interest rate hike by the Bank of Japan, the highest since 2008, combined with disappointing U.S. employment data.
Looking ahead, attention in Asia on Thursday shifted to Japan’s latest trade statistics and the Reserve Bank of India’s monetary policy decision, which was expected to keep the interest rate at 6.5% for the ninth consecutive session.
Japan posted a current account surplus of 1.533 trillion yen ($10.2 billion) in June, less than the 1.789 trillion yen forecast by economists polled by Reuters.
In the stock market, Japan’s Nikkei 225 rose modestly by 0.17%, while the Topix index rose slightly by 0.16%.
The minutes of the Bank of Japan’s July policy meeting highlighted some members’ appetite for further rate hikes, with the key interest rate potentially rising to a neutral level of around 1% by the second half of fiscal 2025, assuming price stability targets are met.
Despite these discussions, BOJ Deputy Governor Shinichi Uchida on Wednesday stressed the need to continue monetary easing given recent volatility in exchange rates and stocks.
In corporate news, SoftBank Group announced a significant share buyback plan worth up to 500 billion yen ($3.4 billion), despite its shares falling more than 3.3%. Meanwhile, Lasertech, a key player in the semiconductor industry, reported a solid annual performance with a 39.7% jump in net sales and a 30.6% increase in operating profit, leading the Nikkei gains.
While mainland China’s CSI 300 index fell 0.17%, Hong Kong’s Hang Seng Index managed to recover, rising 0.53%.
Cathay Pacific, Hong Kong’s flagship airline, has revealed plans to expand its fleet with the purchase of up to 60 Airbus A330-900 aircraft, scheduled for delivery by the end of 2031.
In other regional markets, South Korea’s Kospi index fell more than 0.5% and Australia’s S&P/ASX 200 index also fell 0.5%.