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Asian markets mixed after BOJ leaves monetary policy unchanged

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The Asian markets experienced mixed results following the Bank of Japan’s (BOJ) decision to maintain its current monetary policy. The BOJ kept its key short-term interest rate at -0.1% and the 10-year bond yields at around 0%.

Japan’s Manufacturing Purchasing Managers’ Index (PMI) decreased to 48.6 in September, marking the fourth consecutive month of decline.

Additionally, Japan’s annual inflation rate fell to 3.2% in August, hitting a three-month low.

Meanwhile, China’s market saw a positive performance with a 1.30% increase, followed by Hong Kong with a 1.21% increase. India experienced a marginal 0.02% increase.

Australia, on the other hand, faced a decline of 0.11% in its market. The country’s Manufacturing PMI fell to 48.2, its lowest level in four months. Additionally, the 10-Year Government Bond Yield reached a nine-year high of 4.36%.

Turkey’s central bank responded to high inflation rates by increasing its policy rate by 5 percentage points.

The Bank of England voted to keep its bank rate unchanged at 5.25%, with four out of nine members supporting a 25 basis point increase to 5.5%.

In Thailand, car sales declined by 11.25% compared to the previous year, reaching 60,535 units in August 2023.

Malaysia’s annual inflation rate remained steady at 2% in August 2023, matching market projections.

In the United States, all major indexes experienced slight decreases. The tech-heavy Nasdaq Composite was the weakest performer, falling 1.82% to 13,223.98 points. The S&P 500 slipped 1.64% to 4,329.99 points, marking its worst day since March 22. The Dow declined 1.07% to 34,070.68 points.

In other news, major European countries will release their PMI figures, and retail sales data is expected from the UK and Canada during this session.

WTI crude futures rose above $90 per barrel on Friday, nearing ten-month highs due to concerns over a Russian ban on fuel exports, which could further tighten global oil supply.

The price of spot gold increased by 0.2% to $1,923.29 per ounce, rebounding from a significant drop on Thursday. US gold futures also rose 0.2% to $1,943.10 per ounce. Spot silver rose 0.4% to $23.47 per ounce, poised for its strongest week in four. Platinum increased by 0.7% to $925.77, while palladium jumped by 0.8% to $1,272.85.

Currencies: Japanese Yen / US Dollar (JPY:USD), Chinese Yuan / US Dollar (CNY:USD), Australian Dollar / US Dollar (AUD:USD), Indian Rupee / US Dollar (INR:USD), Hong Kong Dollar / US Dollar (HKD:USD), New Zealand Dollar / US Dollar (NZD:USD).

US stock futures saw a slight increase on Friday after a day of heavy losses. The market continues to be impacted by the Federal Reserve’s hawkish pause. The Dow increased by 0.20%, the S&P 500 rose by 0.22%, and the Nasdaq went up by 0.31%.

Notable Exchange-Traded Funds (ETFs) include JEQ, EWJ, DXJ, FXY, FXI, KWEB, CQQQ, MCHI, ASHR, YINN, TDF, CHIQ, GXC, EWH, KBA, YANG, CXSE, CAF, CWEB, PGJ, KURE, CHIX, CYB.

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