Asian stock markets experienced varied movements on Thursday in light trading following the closure of U.S. markets on Wednesday due to the Juneteenth holiday.
In Tokyo, the Nikkei 225 index gained a slight 0.1%, ending the day at 38,324.10. This minor increase came despite a backdrop of cautious sentiment among investors. In contrast, Hong Kong’s Hang Seng index fell by 0.5%, closing at 18,336.76. The decline was more pronounced in the technology sector, with the Hang Seng Tech Index dropping by 1.4%, following a robust 3.7% rally on Wednesday fueled by strong gains in Nvidia shares.
China’s Shanghai Composite Index also saw a decline, dropping 0.3% to finish at 3,009.72. Contributing to the cautious market mood was the Chinese yuan’s performance, which traded at its lowest level this year. The central parity rate was set at 7.1192 yuan to the U.S. dollar by the China Foreign Exchange Trade System, reflecting ongoing concerns about the Chinese economy. Despite these challenges, China’s central bank opted to keep its one-year lending benchmark rate steady at 3.45% and the five-year loan prime rate at 3.95%, maintaining an accommodative monetary policy to support economic stability.
In Australia, the S&P/ASX 200 index dipped by 0.1%, closing at 7,766.30, while South Korea’s Kospi index saw a modest increase of 0.2%, ending at 2,802.00. Taiwan’s Taiex index posted a minor gain of 0.1%, and Thailand’s SET index fell by 0.3%.
Investors were also reacting to remarks from People’s Bank of China Governor Pan Gongsheng, who reiterated the central bank’s commitment to keeping monetary policies supportive to foster economic growth, which provided some reassurance amid the market’s mixed signals.
European stock markets presented a mixed performance on Wednesday. London’s FTSE 100 index rose by 0.2% to 8,205.11, buoyed by data indicating that British inflation had fallen to the Bank of England’s target of 2% for the first time in nearly three years. This data supported market expectations that the Bank of England might maintain its benchmark rate at 5.25% for the foreseeable future. Conversely, Germany’s DAX index declined by 0.4%, closing at 18,067.91, and France’s CAC 40 index dropped by 0.8%, ending at 7,570.20.
U.S. markets were set to reopen on Thursday after the Juneteenth holiday. On the preceding Tuesday, the S&P 500 reached a new all-time high, closing at 5,487.03, with a 0.3% gain. The Nasdaq composite saw a minor increase, closing at 17,862.23, while the Dow Jones Industrial Average rose by 0.2%, ending at 38,834.86. Nvidia remained a standout performer, with its shares rising by 3.5%, further boosting its market capitalization beyond the $3 trillion mark.
In the commodities market, U.S. benchmark crude oil prices dipped by 15 cents to $80.56 per barrel in electronic trading on the New York Mercantile Exchange. In contrast, Brent crude prices saw a slight increase, rising by 8 cents to $85.15 per barrel. In currency markets, the dollar strengthened to 158.17 Japanese yen from 158.10 yen, while the euro slightly decreased to $1.0742 from $1.0745.
Overall, the mixed performance of Asian stocks reflects ongoing global economic uncertainties and varying regional dynamics, with investors closely monitoring central bank policies, inflation data, and corporate earnings reports for further direction.