Asian equity markets primarily saw an uptrend on Tuesday, extending the gains from the previous session. A robust lead on Wall Street influenced this positive performance, coupled with easing concerns over a potential escalation of the Middle East conflict.
In Japan, the Nikkei 225 index edged up by 0.30%. The Japanese yen experienced a decline, reaching approximately 154.8 per US dollar, hitting new lows not seen in 34 years. This prompted a senior official to issue warnings against excessive currency fluctuations. Investors in Japan also examined data indicating that manufacturing activity approached stability in April, while the services sector expanded at its highest rate in 11 months. Market participants now anticipate the Bank of Japan’s policy decision later this week.
China’s Shanghai Composite index saw a decline of 0.74%. According to an official from the Human Resources Ministry, China generated 3.03 million new urban jobs in the first quarter of 2024. The People’s Bank of China maintained its key lending rates on Monday, amidst stronger-than-expected first-quarter GDP figures and efforts to stabilize the yuan. Nevertheless, indicators of slowing activity in March have raised market expectations for further policy easing.
Hong Kong’s Hang Seng index climbed by 1.89%. India’s Sensex index experienced a modest gain of 0.19%. The HSBC India Manufacturing PMI remained unchanged at 59.1 in April 2024, compared to the previous month’s final reading. The HSBC India Services PMI rose to 61.7 in April 2024 from 61.2 in March.
Australia’s S&P/ASX 200 index gained 0.45%. Data revealed that private sector growth in Australia witnessed its highest increase in two years during April, as manufacturing activity approached the break-even point and services activity maintained its expansionary trend for the third consecutive month.
In the United States, all three major indexes closed higher on Monday, rebounding from their worst week of the year. Investors were encouraged by easing tensions in the Middle East and looked ahead to a busy week filled with corporate earnings reports and significant economic data. U.S. stock futures eased on Tuesday after the major averages posted gains in the previous session, rebounding from their worst week of the year: Dow Jones Industrial Average +0.13%, S&P 500 +0.08%, and Nasdaq Composite +0.02%.
