Nikada
Japan’s Nikkei 225 index experienced a decline of -0.80% as the nation’s manufacturing sector sustained an eighth consecutive month of shrinkage amidst weakened demand.
December export data for Japan exhibited a growth of 9.8% year-on-year, surpassing the expected 9.1%. This provides a glimmer of positivity within the nation’s economic landscape despite the broader manufacturing challenges.
The recent statements from Bank of Japan governor Kazuo Ueda have reignited discussions surrounding a potential adjustment in the country’s monetary policy, introducing an element of speculation in the market.
Meanwhile, China’s Shanghai Composite Index showcased a notable upsurge of 1.80% following the announcement from People’s Bank of China Governor Pan Gongsheng. The revelation of a 50 basis points reduction in reserve ratio requirements effective from February 5th, along with the provision of 1 trillion yuan in long-term capital, represents a strategic move aimed at bolstering growth in the world’s second largest economy.
Elsewhere, the Hang Seng Index in Hong Kong soared by 2.24%, while India’s SENSEX experienced a modest increase of 0.37%. Notably, HSBC’s Flash India Manufacturing PMI for January 2024 surged to 56.9 from 54.9 in December, signaling a robust expansion in the factory sector. Equally impressive, the Services PMI for the same period rose to 61.2 from 59, illustrating a vigorous growth trajectory in the services domain – the strongest in six months.
In Australia, ASX 200 registered a marginal rise of 0.06%. The January preliminary PMI figures indicated resilience in the manufacturing sector with a reading of 50.3, up from 47.6 previously. However, the services sector PMI stood at 47.9, reflecting a slight elevation from the 47.1 recorded earlier.
Shifting focus to the United States, the performance of major indexes exhibited a mixed pattern during the previous session. The market response was influenced by robust corporate earnings releases, contributing to diverse movements in the three primary indices.
On the heels of Netflix reporting a record subscriber count in the fourth quarter, U.S. stock futures indicated a positive trajectory with the Dow up by 0.17%, the S&P 500 by 0.38%, and the Nasdaq surging by 0.59%.
Looking ahead, the upcoming release of fourth quarter GDP data and the Federal Reserve’s preferred PCE inflation figures is anticipated to set the tone for the next week’s policy meeting. Moreover, attention is directed towards the European Central Bank, which is expected to push back on interest rate cut speculations for the year in its imminent policy decision.
Currencies: JPY:USD, CNY:USD, AUD:USD, INR:USD, HKD:USD, NZD:USD.
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