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Global market update: APAC markets mixed, central bank decisions in focus

EditorOliver Gray
Published 18/03/2024, 11:44 am
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Investing.com - Asian Pacific markets kicked off the week with mixed results on Monday, following a decline in US stocks due to concerns about escalating inflation.

The S&P/ASX 200 saw a slight decrease of 0.2%, while the KOSPI 200 and Nikkei 225 reported gains of 0.1% and 1.9% respectively.

US indices reported weekly losses on Friday following the release of inflation data that exceeded expectations and unsettled markets. The S&P 500 fell 0.6%, the Dow Jones Industrial Average dropped nearly 200 points (0.5%), and the Nasdaq Composite shed 1%. The higher-than-anticipated inflation reflected in consumer and producer price reports earlier this week dashed investors' hopes that the Federal Reserve might soon start reducing interest rates. Fed Chair Jerome Powell stated that the central bank is seeking more assurance that inflation is heading back to its 2% target.

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Meanwhile, US consumer sentiment appears to have dipped. The University of Michigan's monthly measure of US consumer sentiment, released on Friday, came in lower than economists expected.

In individual stock news, Adobe (NASDAQ:ADBE) shares fell 14% on Friday after the software company's latest results exceeded forecasts, but its guidance for the current quarter disappointed investors. Ulta Beauty (NASDAQ:ULTA)'s stock fell 5.2% after the company warned of slowing growth in the beauty industry and offered full-year earnings guidance that fell short of Wall Street's expectations. Fisker shares rose 13% after the struggling electric vehicle maker downplayed discussions of a potential bankruptcy filing.

In commodity markets, Brent crude oil fell slightly by 0.1% to US$85.34 a barrel, while gold decreased by 0.3% to US$2,155.90.

In local bond markets, the yield on Australian 2 Year government bonds increased to 3.86%, while the 10 Year yield also rose to 4.13%. US Treasury notes were up, with the 2 Year yield at 4.73% and the 10 Year yield at 4.31%.

In Asia, Chinese shares ended higher, supported by auto and tech hardware stocks. The Shanghai Composite Index rose 0.5% to 3054.64, extending its winning streak to a fifth week. The Shenzhen Composite Index added 0.9%, and the ChiNext Composite Index edged 0.1% higher.

In contrast, Hong Kong's Hang Seng Index fell 1.4% to close at 16720.89, weighed down by biotech and property stocks. The Nikkei Stock Average in Japan fell 0.3% to 38707.64 as declines in chip stocks offset gains in energy companies.

European stocks were mixed, with the Stoxx Europe 600 down 0.3% at 504.80, while Germany's DAX and France's CAC 40 remained flat. The FTSE 100 closed down 0.2% at 7727.42 points on Friday, pulled down by Reckitt Benckiser shares which fell after the company was hit with a $60 million fine in a court case relating to its Enfamil infant formula.

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