Asia-Pacific markets experienced a predominantly downward trend as investors await critical details regarding U.S. trade agreements before the impending tariff increases slated for July 9 by President Donald Trump.
Japan’s Nikkei 225 index closed the trading day flat at 39,810.88, while the broader Topix index also remained unchanged at 2,827.95.
In South Korea, the Kospi index finished the day down 1.99%, settling at 3,054.28, whereas the small-cap Kosdaq fell by 2.21% to end at 775.80.
Contrarily, mainland China’s CSI 300 index saw a slight increase of 0.36%, closing at 3,982.20, while Hong Kong’s Hang Seng Index dipped by 0.64%, concluding at 23,916.06.
In Australia, the S&P/ASX 200 ended the day flat at 8,603, with little movement observed.
Meanwhile, India’s benchmark Nifty 50 saw a decline of 0.17%, and the BSE Sensex dropped by 0.18% by noon local time.
In the United States, a positive jobs report overnight alleviated investor anxieties regarding a possible economic slowdown, leading to record highs in both the S&P 500 and Nasdaq Composite indices.
The Dow Jones Industrial Average advanced by 344.11 points, equivalent to 0.77%, marking a close at 44,828.53.
The S&P 500 increased by 0.83% to close at 6,279.35, while the Nasdaq gained 1.02% to finish at 20,601.10.
On a notable note, U.S. markets will be closed on Friday due to the Independence Day holiday.
Moving to Indonesia, the Jakarta Composite Index has faced negative momentum for the fourth consecutive day, decreasing by as much as 0.42% on Friday.
Reports indicate that the central bank is planning to implement an interest rate cut, following two reductions earlier this year, in response to the economy’s slowest growth in over three years recorded in the first quarter.
On the trade front, Indonesia is set to sign a significant $34 billion pact with trading partners to bolster imports from the U.S. two days before the impending tariff increases.
This move aligns with Indonesia’s efforts to engage in trade negotiations with Washington, which reportedly includes increased imports of fuels and investments in energy and agriculture sectors in the U.S.
Additionally, Garuda Indonesia is in discussions to purchase up to 75 Boeing jets as part of its growth strategy.
The Indonesian government faces a looming 32% tariff on its exports and has previously offered to amplify imports from the U.S. to facilitate smoother trade discussions.
In Taiwan, the currency slightly appreciated against the U.S. dollar on Friday as investors contemplated the potential effects of elevated tariffs on exports ahead of the deadline.
The Taiwanese dollar appreciated by 0.25%, reaching 28,849, after achieving its highest value since April 7, 2022, earlier in the session.
Conversely, the benchmark Taiex index showed a decline of 0.67%, influenced primarily by the performance of the energy, industrials, and healthcare sectors.
Noteworthy underperformers in the index included Century Iron and Steel Industrial, which plummeted by 10%, Cosmo Electronics Corp with a 7.29% decrease, and Asia Optical declining by 6.67%.
Tech giants such as Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry (commonly known as Foxconn) witnessed shares fall by 0.46% and 2.13%, respectively.
In India, trading activity opened flat as investors speculated about the prospects of a trade agreement alongside market reactions to the Securities Exchange Board of India’s (SEBI) decision to ban U.S.-based trading firm Jane Street over allegations of market manipulation.
As of 9:50 a.m. local time, both the Nifty 50 and BSE Sensex indices were observed to be stable.
In a significant development, Alibaba Group announced its plans to raise approximately HK$12 billion ($1.53 billion) through exchangeable bonds aimed at enhancing its global cloud infrastructure and commerce operations.
These bonds will not accrue interest over time but can be exchanged for shares in Alibaba Health, where Alibaba holds about 64% equity interest.
This fundraising initiative follows Alibaba’s successful $5 billion dual-currency bond issue last November.
Recently, Alibaba Cloud disclosed the launch of new data centers in the Philippines and Malaysia.
Furthermore, Alibaba’s commerce division revealed a substantial subsidy program amounting to 50 billion yuan ($6.4 billion) planned for the upcoming 12 months.
Vietnam’s currency, the dong, continued to depreciate against the U.S. dollar on Friday.
The dong weakened by 0.1% to 26,200 against the dollar, reaching a new record low during the session.
Additionally, Vietnamese stocks faced declines for the second consecutive day, despite showing gains earlier following the announcement of a trade deal with the U.S.
The benchmark Vietnam Index observed minor fluctuations, concluding with no significant change.
The poorest performing stocks included Siam Brothers Vietnam, which plunged by 6.79%, Cat Loi with a 4.53% decrease, and ICAPITAL Investment dropping 3.32%.
In a regulatory update, SEBI has barred Jane Street Group from participating in India’s securities market.
According to the official order on SEBI’s website, the trading firm’s entities are prohibited from any securities market activity, including buying, selling, or dealing in securities.
Additionally, an interim order has been issued to seize over 48.4 billion Indian rupees ($566.3 million) from Jane Street, as part of allegations regarding illegal earnings linked to Nifty 50 manipulations.
On the economic front in Japan, household spending registered a significant year-on-year increase of 4.7% in real terms, marking a noteworthy rise and surpassing economists’ expectations.
This statistic represents the highest growth since August 2022, and it surpassed the 1.2% median forecast provided by various analysts.
Quantitatively, household spending reached 316,085 yen ($2,183.49) in May, while the average monthly household income rose by 0.4% year-on-year in real terms, reaching 522,318 yen.
This data on household expenditure plays a crucial role for the Bank of Japan, influencing decisions regarding potential interest rate hikes in the future.
Overall, as Asia-Pacific markets navigate these developments, the focus remains on trade negotiations and broader economic indicators as key determinants of market performance.
Investors in the region continue to monitor both domestic and international news for signals that may affect their strategies moving forward.
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