AP – Asian markets were mixed yesterday following a global sell-off a day earlier, as Wall Street declined in the technology, energy and other sectors.
Japan’s benchmark Nikkei 225 slipped 1.1 per cent, and closed at 36,657.09.
Data released yesterday showed Japan’s wage growth remains strong, as average cash earnings in July grew 3.6 per cent year-on-year, beating market expectations, while real earnings unexpectedly increased by 0.4 per cent in July, increasing the likelihood of another rate hike.
The US dollar was trading at JPY143.48, fuelled by the robust data.
“If global markets remain in risk-off mode – especially with commodities like oil tanking – the Federal Reserve (Fed) could be pressured to pull the trigger on a larger 50-basis-points cut. This would be driven by easing inflation risks, which could send USD/JPY further south,” Stephen Innes of SPI Asset Management said in a commentary.
In South Korea, the Kospi ended 0.3 per cent lower at 2,572.17, as the country’s economy contracted by 0.2 per cent in the second quarter, in line with estimates.
Hong Kong’s Hang Seng index declined 0.6 per cent to 17,353.05 and the Shanghai Composite index was up less than 0.1 per cent at 2,785.80. Australia’s S&P/ASX 200 rose 0.4 per cent to 7,982.40.
United States (US) futures fell, while oil prices were higher.
On Wednesday, the S&P 500 fell 0.2 per cent to 5,520.07. The Nasdaq composite shed 0.3 per cent to 17,084.30. The Dow Jones Industrial Average, however, managed a gain of 0.1 per cent to close at 40,974.97.
The market’s latest pullback came as a government report showed job openings in the US fell unexpectedly in July, a sign that hiring could cool in the coming months.
The Labor Department reported that there were 7.7 million open jobs in July, down from 7.9 million in June and the fewest since January 2021. Openings have fallen steadily this year, from nearly 8.8 million in January. But overall, the report was mixed, with hiring having risen last month.
Several other reports this week will help give a clearer picture of the economy for the Fed and Wall Street.
The Institute for Supply Management will release its services sector index for August on
Thursday. The services sector is the biggest component of the US economy.
The US is planning to release its monthly jobs report for August by today.
