Mixed Trading in Asia
BANGKOK — Asian stock markets exhibited mixed performances on Wednesday following a new U.S. inflation report that caused most Wall Street stocks to decline. However, shares of Nvidia lifted the Nasdaq to a new all-time high.
Investor Focus in Japan
The Nikkei 225 in Tokyo dipped slightly by less than 0.1%, closing at 39,663.40. Investors are closely monitoring the impending Upper House election on Sunday, which is anticipated to result in tax reductions and increased spending aimed at boosting the ruling Liberal Democrats’ popularity.
Concerns Over Fiscal Health
Concerns regarding Japan’s financial stability have prompted yields on long-term Japanese government bonds to reach multi-year highs. Stephen Innes from SPI Asset Management commented, “The critical issue isn’t merely which party offers the most attractive benefits, but whether Japan’s debt structure can handle further fiscal challenges.”
Asian Market Highlights
Across Asia, the Hang Seng in Hong Kong saw a slight increase of 0.1%, reaching 24,618.23, while the Shanghai Composite index fell by 0.1%, finishing at 3,503.78. South Korea’s Kospi dropped 0.9% to 3,186.38, and Australia’s S&P/ASX 200 decreased by 0.8% to 8,561.80. Taiwan’s Taiex rose by 0.9%, and India’s Sensex remained stable. Thailand’s SET also showed minimal changes.
Jakarta and U.S. Market Reactions
In Jakarta, stocks surged by 0.4% after President Trump announced plans to impose a 19% tariff on imports from Indonesia, exempting U.S. goods. He also mentioned Indonesia’s commitment to purchasing American energy and agricultural products.
U.S. Market Overview
The S&P 500 dropped 0.4% to 6,243.76 but remained near its record high from last week, with 90% of its stocks declining. The Dow Jones Industrial Average fell 1% to 44,023.29, while the Nasdaq composite experienced a 0.2% rise, hitting a record 20,677.80, primarily driven by Nvidia’s strong performance.
Inflation and Treasury Yields
U.S. inflation climbed to 2.7% last month, up from 2.4% in May, attributed to rising prices of imported goods. Following the inflation report, Treasury yields fluctuated before increasing, with the 10-year yield climbing to 4.48% from 4.43%. Analysts suggest that persistent inflation could hinder potential interest rate cuts by the Federal Reserve this year.
