Asian Equities Conclude Challenging Q3: Asian stock markets rose again. This was a positive sign in a challenging quarter due to concerns about higher interest rates. MSCI’s Asia-Pacific shares ex-Japan index (.MIAPJ0000PUS) surged 1%, marking its most significant one-day gain in four weeks.
But this was only a temporary rise as the gauge was dangerously close to a 10-month low reached the day before. The market could drop by 4% from July to September. This would be the worst quarterly performance since the 13.6% drop a year ago.
Early market signs gave Europe some hope. The German DAX futures rose by 0.19%, FTSE futures by 0.12%, and Eurostoxx 50 futures by 0.07%.
Investors are watching the U.S. personal consumption spending price index this afternoon. Before that, attention was paid to Eurozone inflation stats, which reflect global economic factors.
Experts predict that the inflation rate in the Eurozone will decrease from 5.2% in August to 4.5% in September, resembling fortune tellers’ predictions.
Inflation in Germany decreased in September, reaching its lowest level since the Ukraine attack. A glimpse into the economy’s cycles.
The stock market is at risk due to high Treasury rates, the highest in 16 years. The Fed’s recent actions impact risk sentiment and worsen the sad music.
U.S. economic data shows growth was steady in Q2 and appears to have accelerated this quarter. The government shutdown and auto worker strike make predicting the rest of 2023 complex.
During a recent Fed press conference, Chair Powell discussed real GDP with the 2% inflation goal. Ryan Brandham, Validus Risk Management’s global capital markets head in North America, downplays the significance of the current GDP figure despite rising inflation.
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Asia-wide, the Nikkei (.N225) fell by 0.34%, while Australia’s S&P/ASX 200 index (.AXJO) rose by 0.56%. Hong Kong’s Hang Seng Index (.HSI) gained 2.7%. The Chinese markets are preparing for the upcoming week.
Investors focused on the Chinese real estate market after Evergrande (3333. HK) investigated the founder’s illegal actions.
In Asian stock markets, 10-year Treasury notes yield drops by 0.5 basis points to 4.592%. This is the opposite of Thursday when it reached a 16-year high of 4.688%.
The dollar index fell by 0.15% to 106, still near the 10-month high of 106.84. With a 2.4% increase this month, the index is set to rise for the second consecutive month.
At 149.35 yen to the dollar, Japanese officials may need to intervene as the currency nears 150.
Core inflation in Japan dropped for the third consecutive month in September, mainly due to lower gas prices. This is a positive sign for the recovering economy.
After a brief pause, oil prices rose further on Friday, considering Saudi Arabia and Russia’s increased supply estimates versus China’s anticipated demand during Golden Week.
Brent is down 0.35% to $95.05 per barrel, while U.S. crude is down 0.02% to $91.69 per barrel.
Gold prices are near a six-month low and poised to drop the most in a month since February. The spot gold price is stable at $1,864.75 per ounce, indicating lost money over time.