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Global market update: APAC shares mixed as US rallies

Published 28/03/2024, 11:26 am
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Investing.com - Asian-Pacific markets had a mixed performance on Thursday, following a rebound in US stocks after a three-day losing streak. Australia's ASX 200 rose by 0.8%, South Korea's Kospi 200 slightly fell by 0.1%, and Japan's Nikkei 225 dropped by 0.8%.

In the US, the stock market rallied as investors hope for a gentle economic slowdown in light of anticipated rate cuts later this year. The Dow Jones Industrial Average gained 477 points, a 1.2% increase to 39760. The S&P 500 and the Nasdaq also saw increases of 0.9% and 0.5% respectively. The utilities and real estate sectors outperformed, both gaining over 2%. All S&P 500 sectors ended the day on a positive note.

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Pharmaceutical company Merck saw its shares rise by 5% after its new drug for a severe lung disease received US approval. On Thursday, investors will be keenly watching the release of a slew of data including the fourth-quarter GDP, weekly jobless claims, and consumer sentiment.

In commodities, Brent crude oil slightly rose by 0.1% to US$86.35 a barrel, and gold saw a 0.7% increase to US$2,194.79. Bond yields in Australia and the US fell, with the Australian 2-year government bond yield down to 3.64% and the 10-year yield down to 4.00%. US Treasury notes also saw a dip, with the 2-year yield at 4.57% and the 10-year yield at 4.19%. The Australian dollar remained steady at 65.31 US cents.

Chinese shares saw a decline, particularly in the tech sector, causing the benchmark index to fall below the significant 3000 level. The Shanghai Composite Index fell by 1.3% to close at 2993.14, while the Shenzhen Composite Index and the ChiNext Price Index both declined by 2.8%. Investors are now awaiting the release of March PMI data over the weekend.

Hong Kong shares also fell, dragged down by the tech sector. The Hang Seng Index fell by 1.4% to 16392.84, and the Hang Seng Tech Index lost 2.25%. In contrast, Japan's Nikkei Stock Average rose by 0.9% to 40762.73, largely due to gains in real estate stocks and the weakening yen.

India's Sensex rose by 0.7% to close at 72996.31, with traders showing confidence in the upcoming Fed rate cuts.

European shares closed higher, with the STOXX Europe 600 Index, CAC 40 Index, and DAX all seeing gains. London's blue-chip FTSE 100 index remained relatively flat, edging up by 0.01% to finish at 7,931.98 points

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