Asian Markets: Asian markets start the week with significant events. These relate to economic considerations. These factors may affect market sentiment. Investors and analysts are anticipating Chinese economic data and Indian interest rate decisions. They regularly track global bond prices, which are vulnerable.
Last week, the Nasdaq, S&P 500, and MSCI World index fell the most since March. MSCI Asia ex-Japan fell 2.3%, its worst drop in six weeks. People felt this way.
Bond prices worldwide, particularly in the U.S., make individuals more cautious and risk-averse. The U.S. yield curve steepened strangely as long-term Treasury bonds were sold. The yield curve rose 20-30 basis points, similar to March. The spread between 2-year and 30-year loan interest rates rose 30 basis points. This may be the largest change in a week in over ten years.
Recent stock market events were unexpected. The robust U.S. economy has caused bond market instability. The “soft landing” or “no landing” story is widespread. JP Morgan and other Wall Street firms reversed their predictions of a U.S. collapse.
However, U.S. budget issues and the Bank of Japan’s unanticipated “yield curve control” move might affect Japanese bond prices. While U.S. firms are doing well, money appears to be worsening, and stocks are suffering.
This week, everyone is interested in how well businesses in Asia are doing and how much money they make. Alibaba may succeed in China. Sony and Softbank, Japanese giants, are also joining.
Asia has key stories and events this week. The July U.S. consumer price inflation report excites us. This will enhance this week’s tale. Economists expect the annual rate to rise from 3.0% to 3.3%.
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Everyone is watching the economy. Chinese trade, loan, producer pricing, and consumer inflation indicators are essential. Stakeholders are cautiously hopeful. They are cautiously optimistic since economic pressures are easing and import/export restrictions are being lifted. This year focused on these items.
Beijing may feel pressured to adopt drastic economic measures if these indications don’t materialize. They may need to reduce bank reserve requirements further.
As attention shifts to India, the Reserve Bank of India may keep its introductory repo rate at 6.50%. This might affect markets and indicate quiet until March 2024.
Asia has an easy schedule. Therefore, the performance starts on Monday. Indonesia’s second-quarter GDP and Thailand’s July inflation are notable. Indonesia’s second-quarter GDP is expected to grow by 3.72 percent. This is an improvement over the 0.92 percent drop in the first quarter. This recovery may slow down after a year.
Why Monday?
Second-quarter Indonesian GDP. Thai inflation and Chinese foreign currency reserves in July.
Our Reader’s Queries
How big is the Asian market?
The Asian market, with its 4.5 billion people, offers countless opportunities for companies looking to take advantage of its rapid expansion.
What was the first stock exchange in the world?
The Amsterdam stock exchange is renowned as the oldest “modern” securities market globally. It was established soon after the formation of the Dutch East India Company (VOC) in 1602. This marked the beginning of regular trading of equities as a secondary market for trading its shares.
How many stock exchange is there in India?
India has a total of 23 stock exchanges, with two being at the national level – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The remaining 21 stock exchanges are categorized as Regional Stock Exchanges (RSEs).
When was Kolkata stock exchange established?
Established on 1 December 1908, the Calcutta Stock Exchange is located in Kolkata, India. It is owned by the Ministry of Finance, Government of India, with Dr Bhaskar Banerjee serving as the Chairman and Sri Subrato Das as the Managing Director & Chief Executive Officer.