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Global market update: APAC shares lift as US CPI cools

Published 15/08/2024, 10:52 am
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Investing.com - Major APAC indices lifted at Thursday's open, following gains in US stocks fuelled by cooling inflation data.

By 10:50 am AEST (12:50 am GMT) the S&P/ASX 200 and Nikkei 225 added 0.6% apiece, while the KOSPI 200 remained closed for a public holiday.

In the United States, the S&P 500 edged higher after fresh inflation data reassured investors that the Federal Reserve is likely to cut interest rates next month. The broad-market index added 0.4% on Wednesday, bringing its year-to-date advance to 14%. The Dow Jones Industrial Average rose 0.6%, or around 240 points, while the tech-heavy NASDAQ Composite saw a slight gain.

The consumer price index for July showed price gains continuing to cool, rising 2.9% from a year earlier—the lowest reading since 2021 and slightly below economists' expectations of 3%. A day earlier, a similar measure for business prices also came in below expectations. This easing of price pressures has bolstered confidence in a rate cut at the Fed's September meeting.

In bond markets, the yield on the 10-year Treasury note edged down to 3.821%, marking its fourth consecutive session of declines.

Among individual stocks on Wednesday, Kellanova (NYSE:K) shares jumped 7.8%, making it the best performer in the S&P 500, after Mars announced it would acquire the Pringles maker. Victoria's Secret & Co (NYSE:VSCO) shares surged 16% after appointing Hillary Super, CEO of competitor Savage X Fenty, as its next chief executive. On the downside, shares of Google parent Alphabet (NASDAQ:GOOGL) Inc (NASDAQ:GOOG) fell 2.3% amid reports that Justice Department officials might seek to break up the company. Tesla Inc (NASDAQ:TSLA) shares dropped 3.1%.

In commodity markets, Brent crude oil was down 0.8% to US$80.04 a barrel, while gold remained flat at US$2,448.28.

Chinese shares ended lower as investors braced for key economic data, including retail sales, industrial output, and fixed asset investment, due on Thursday. The benchmark Shanghai Composite Index closed 0.6% lower at 2,850.65, the Shenzhen Composite Index fell 0.9%, and the ChiNext Price Index dropped 1.4%. Notable decliners included Dongfang Electric Corporation, down 9.9%, and Yifeng Pharmacy Chain, down 4.6%. Meanwhile, Kunlun Tech led the gains, up 4.9%, and Foxconn Industrial Internet rose 2.9% after its parent company released strong second-quarter earnings.

Hong Kong's Hang Seng Index closed 0.35% lower at 17,113.36, ending five straight sessions of gains. Decliners included Wuxi Biologics, down 4.3%, WuXi AppTec, down 4.0%, and Hansoh Pharmaceutical Group, down 3.7%. On the positive side, WH Group surged 8.4% after posting a rise in first-half net profit, Sino Biopharmaceutical rose 2.4%, and Chow Tai Fook Jewellery Group gained 1.8%.

Japanese stocks ended higher, buoyed by gains in auto and financial stocks on hopes of forthcoming Fed rate cuts. Honda Motor gained 3.5%, and Daiwa Securities Group climbed 3.2%. The Nikkei Stock Average rose 0.6% to 36,442.43. The 10-year Japanese government bond yield fell 3 basis points to 0.810%.

Indian shares ended higher, led by tech stocks. The benchmark Sensex index closed 0.2% higher at 79,105.88. HCL Technologies rose 2.1%, Infosys added 1.4%, and Tech Mahindra gained 1.4%. However, steel stocks declined, with Tata Steel dropping 1.8% and JSW Steel falling 1.9%.

Stocks in the U.K. rose on Wednesday, with the FTSE 100 Index adding 0.6% to 8,281.05. Among large companies, Dowlais Group PLC was the biggest gainer, surging 8.3%, followed by Genuit Group PLC, which rose 5.7%. Alpha Group International PLC also gained 5.0%.

Elsewhere in Europe, markets closed higher. The STOXX Europe 600 Index was up 0.5% at 504.10, Germany's DAX rose 0.4% to 17,885.60, and France's CAC 40 added 0.8% to 7,333.36.

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