Asia-Pacific markets experienced a generally downward trend on Friday as investors keenly await further details regarding U.S. trade agreements, with heightened tariffs looming just days away.
Japan’s Nikkei 225 index closed the day flat at 39,810.88, while the broader Topix index also stood unchanged at 2,827.95.
In South Korea, the situation was more challenging as the Kospi index fell by 1.99% to end at 3,054.28, and the small-cap Kosdaq decreased by 2.21%, closing at 775.80.
On the other hand, Mainland China’s CSI 300 index managed to gain 0.36%, concluding at 3,982.20, while Hong Kong’s Hang Seng Index posted a decline of 0.64%, finishing at 23,916.06.
In Australia, the S&P/ASX 200 closed flat at 8,603.
During the same period, India saw its benchmark Nifty 50 decline by 0.17%, along with BSE Sensex dropping 0.18% as of 12:15 p.m. Indian Standard Time.
In Overnight trading in the U.S., a stronger-than-expected jobs report helped to alleviate some investor fears about a potential slowdown in the economy, allowing the S&P 500 and Nasdaq Composite to reach new record highs.
The Dow Jones Industrial Average saw an increase of 344.11 points, or 0.77%, closing at a remarkable 44,828.53. The S&P 500 climbed by 0.83% to finish at 6,279.35, while the Nasdaq gained 1.02% to end at 20,601.10.
Both the S&P 500 and the Nasdaq Composite set new records with their respective closings.
It is important to note that U.S. markets are closed on Friday in observance of the Independence Day public holiday, limiting trading data.
In Indonesia, the Jakarta Composite Index faced a dip of 0.42%, marking the fourth consecutive day of declines.
Reports indicate that the central bank of Indonesia is poised to implement another interest rate cut following two prior reductions within the year. This development emerges in light of the economy growing at its slowest rate in more than three years during the first quarter, as highlighted by Bank Indonesia’s governor Perry Warjiyo.
Before a significant increase in tariffs is set to take effect on July 9, it is reported that Indonesia will sign a substantial $34 billion pact with its trading partners aimed at bolstering imports from the U.S., enhancing bilateral trade relations.
According to reports, this agreement involves an uptick in fuel imports and investments by Indonesian enterprises in both the energy and agriculture sectors within the U.S.
Furthermore, Garuda Indonesia, the nation’s flag carrier, is engaged in negotiations to acquire up to 75 Boeing jets.
Adjusting to the tariff pressure, Jakarta faces a substantial 32% tariff and is previously noted to have proposed increasing U.S. imports as a means to manage trade discussions with Washington.
Switching to Taiwan, the Taiwanese dollar experienced appreciation against the U.S. dollar, gaining 0.25% to reach 28,849 as of 12:55 p.m. local time.
This uptick occurred as investors scrutinized the potential ramifications associated with looming higher U.S. tariffs on exports.
Nevertheless, the benchmark Taiex index observed a decline of 0.67%, primarily due to declines in the energy, industrials, and healthcare sectors.
The leading decliners included Century Iron and Steel Industrial, which plunged 10%, Cosmo Electronics Corp down by 7.29%, and Asia Optical, which fell by 6.67%.
Notably, shares of prominent tech firms Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry, also recognized as Foxconn, traded lower, reflecting contractions of 0.46% and 2.13%, respectively.
In India, stocks exhibited stability in early trading, as both the Nifty 50 and BSE Sensex were flat as of 9:50 a.m. local time.
Investors weighed the potential impact of ongoing trade negotiations against the backdrop of the Securities Exchange Board of India’s ban on the U.S.-based trading firm Jane Street over allegations of market manipulation.
In a recent development, Alibaba Group aims to raise approximately HK$12 billion ($1.53 billion) through exchangeable bonds to support its global cloud and commerce initiatives.
The exchangeable bonds will not offer any interest during their lifespan, with investors having the option to exchange them for shares in Alibaba Health, in which Alibaba Group holds around 64% equity.
This fundraising effort follows Alibaba’s prior successful raise of $5 billion through a dual-currency bond back in November.
Recently, Alibaba Cloud unveiled plans for new data centers across the Philippines and Malaysia, while its commerce sector announced a substantial subsidy program totaling 50 billion yuan ($6.4 billion) scheduled over the next fiscal year.
Continuing to monitor regional developments, the Vietnamese dong also depreciated against the dollar, shedding 0.1% to reach 26,200 as of 10:51 a.m. local time.
This decline came after the currency had hit a record low earlier in the session.
Coinciding with the currency depreciation, Vietnamese stocks marked their second consecutive decline despite a bounce back noted in the prior session after a trade deal with the U.S. was announced.
The benchmark Vietnam Index was reported as flat, with a few particularly poor performers such as Siam Brothers Vietnam plunging 6.79%, Cat Loi decreasing by 4.53%, and ICAPITAL Investment declining by 3.32%.
On a regulatory note, the Securities Exchange Board of India (SEBI) has taken significant measures against Jane Street Group, effectively barring the firm from participating in India’s securities market due to claims of market manipulation.
SEBI’s order prohibits Jane Street’s entities from engaging in any buying, selling, or dealing in securities, both directly and indirectly.
Additionally, the regulator imposed an interim order to seize assets worth over 48.4 billion Indian rupees ($566.3 million) belonging to Jane Street, citing alleged illegal gains from the manipulative activities.
In Japan, positive news emerged as household spending data surpassed forecasts, indicating a year-on-year increase of 4.7% in real terms — the best performance since August 2022, as reported in government data released Friday.
This increase exceeded the median forecast of 1.2% made by economists surveyed by Reuters.
In quantitative terms, average household spending reached 316,085 yen ($2,183.49) for the month of May, coupled with a slight rise of 0.4% in average monthly household income year-on-year, amounting to 522,318 yen.
Household spending remains a crucial indicator monitored by the Bank of Japan, particularly in terms of interest rate decisions.
As markets opened Friday, the overall sentiment across Asia-Pacific appeared mixed, reflecting day-to-day fluctuations.
At 8:15 a.m. Singapore time, the Nikkei 225 index exhibited stability, while the broader Topix index moved up by 0.11%.
On the contrary, the Kospi index in South Korea recorded a decrease of 0.26%, alongside the small-cap Kosdaq which fell by 0.65%.
Meanwhile, in Australia, the S&P/ASX 200 showed slight improvement, ticking up by 0.17%.
Looking ahead, futures indicated a positive opening for Japan’s Nikkei 225, with Chicago futures anticipating a rise to 40,100 compared to its last close of 39,785.90.
For the Hong Kong Hang Seng index, futures projected a weaker opening at 23,991, lower than the prior close of 24,069.94.
In Australia, futures tied to the S&P/ASX 200 suggested a higher opening at 8,611 compared to its last close of 8,595.80.
Thus, mixed signals continue to resonate in the markets as key economic indicators and regulatory decisions shape trading activities across the Asia-Pacific region.
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