On Thursday, Asian shares and bonds rose alongside with the sharp decline of dollar. Meanwhile, the reason behind this was a shockingly low estimate on the U.S. inflation fueled speculation that the post-pandemic tightening cycle is coming to an end. Known as the world’s second largest economy, investors are now curious on peeping into China’s …
On Thursday, Asian shares and bonds rose alongside with the sharp decline of dollar. Meanwhile, the reason behind this was a shockingly low estimate on the U.S. inflation fueled speculation that the post-pandemic tightening cycle is coming to an end.
Known as the world’s second largest economy, investors are now curious on peeping into China’s trade statistics for indications on how it’s economy is faring as an aftermath of a string of negative economic releases earlier this month. Exports increased by 3.7% in yuan-denominated terms in the first half of the year, whilst imports were virtually steady, according to figures released earlier this morning, with more to come.
Boosted by a 2.1% increase in Hang Seng Index and a 1.4% increase in Australia’s resource- heavy equities, MCSI’s broadest index of Asia-Pacific shares outside Japan has increased by 1.5%. The Nikkei 225 Index in Japan rose by 1.2%. Chinese IT giants listed in Hong Kong rose by 3% in early trade after being urged to boost the country’s weakening economy, adding to hints that a years-long crackdown on the sector is coming to an end.
Overnight, the much-anticipated Consumer Price Index (CPI) from the U.S. delivered better news than markets had hoped for. The CPI increased 3% year on year in June, falling short of estimates for a 3.1% increase and a far cry from the 9.1% in the same month last year. Core inflation, which the Fed had anticipated would be sticky, also showed more sharply than predicted.
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