Asian markets experienced a positive start to the week as Wall Street continued its winning streak, moving closer to record highs after a volatile summer. Here is a summary of the key market movements in the region:
– In Tokyo, the Nikkei 225 stock index bounced back with a 2.1% gain, erasing previous day losses and reaching 38,156.41. The yen also strengthened against the U.S. dollar, trading at 146.94 after briefly hitting 145.
– China maintained its benchmark lending rates unchanged, with the one-year prime rate at 3.35% and the five-year LPR at 3.85%. This decision followed a series of rate cuts implemented last month to support the economy.
– Hong Kong’s Hang Seng index dropped by 0.3% to 17,525.16, while the Shanghai Composite lost 1.0% to 2,865.18.
– Australia’s S&P/ASX 200 index rose by 0.2% to 7,996.50, with the Reserve Bank of Australia opting to keep the cash rate target at 4.35% to control inflation.
– On Wall Street, the S&P 500 extended its winning streak to eight days, closing at 5,608.25, just 1% away from its all-time high. The Dow Jones Industrial Average and the Nasdaq Composite also posted gains.
– The bond market saw the yield on the 10-year government bond decrease slightly to 3.87% from 3.88%.
– In energy trading, U.S. benchmark crude fell to $73.09 a barrel, while Brent crude, the international standard, rose to $77.05 a barrel.
Investors are eagerly anticipating a speech by Federal Reserve Chairman Jerome Powell in Jackson Hole, Wyoming, amid expectations of an interest rate cut next month. The global markets continue to show signs of recovery, despite recent uncertainties, signaling positive momentum for the weeks ahead.
