- Nikkei 225 up 0.3% after improved manufacturing confidence.
- Shanghai Composite gains 0.3% despite mixed manufacturing reports.
- Euro rises, yen falls amid European political shifts and U.S. market volatility.
Asian stock markets experienced modest gains today, buoyed by mixed economic signals from Japan and China. Japan’s Nikkei 225 rose by 0.3% following the Bank of Japan’s tankan survey, which indicated a slight improvement in manufacturing confidence.
However, this was tempered by a downgrade in the government’s first-quarter growth estimate to a -2.9% annual rate.
Mixed Economic Data Buoys Asian Stocks Amid Global Market Shifts
China‘s Shanghai Composite also climbed 0.3%, despite contradictory manufacturing surveys. While the official report showed continued contraction, the Caixin Manufacturing PMI presented a slight improvement in business conditions. Meanwhile, the euro strengthened due to political developments in France, and the Japanese yen depreciated. U.S. futures and oil prices also saw gains, with benchmark U.S. crude reaching $81.93 a barrel.
In China, the Shanghai Composite rose by 0.3% following mixed results from manufacturing surveys. The official factory purchasing managers’ index remained in contraction for the second consecutive month, while the Caixin PMI indicated marginal improvement in manufacturing activity, edging up to 51.8 in June from 51.7 in May.
The euro appreciated against the dollar, driven by strong performance from the far-right National Rally in French legislative elections, raising the possibility of a significant political shift. Conversely, the Japanese yen weakened, trading at about 161 yen to the dollar. This divergence reflects varying investor sentiments towards European and Asian currencies amid political and economic developments.
In the U.S., futures and oil prices showed positive momentum. Benchmark U.S. crude prices climbed to $81.93 a barrel, and Brent crude increased to $85.41 a barrel. U.S. stock indices ended the previous week with mixed results, but both the S&P 500 and Nasdaq remain close to their all-time highs, supported by easing inflation and strong performance in technology stocks despite recent pullbacks.
The Asian stock markets’ modest gains reflect cautious optimism amid mixed economic data and global political shifts. Investors remain attentive to upcoming reports and potential policy changes that could influence market dynamics further.
“Across all industries and firm sizes, business conditions held steady at 12, which is on past form consistent with (quarterly) GDP growth of around 0%.”
– Marcel Thieliant, Capital Economics
