Asian equity slipped on Thursday, burdened by Chinese activity data that was weaker than expected and plunging into copper prices, while Yen strengthened after the Bank of Japan raised the estimated inflation for the fiscal year and withstand stable tariffs.
Revised forecasts suggest that optimism is careful that the Japanese trade agreement with the US will help the economy avoid steep declines and make Boj be on a path to raise interest rates at the end of the year. Governor Ueda will talk to the media at 0630GMT.
Yen appreciated 0.4% to 148.62 per US dollar immediately after the central bank maintains a short -term interest rate of 0.5%, as expected, in a round voice.
“The estimated inflation appointed shows a higher possibility for an increase in interest rates,” said David Chao, a global market strategist for Asia-Pacific in Investco.
“Today’s announcement increases the possibility of an increase in interest rates earlier than expected. Maybe we can see the increase in interest rates soon after October.”
Japanese shares showed a slight reaction to the decision and finally rose 0.9%. Shorter bonds than Japan were discussed losses after the Bank of Japan policy statement caused market participants to encourage expectations for future interest rates.
Within 24 hours of action, investors also digest trade agreements between the US and South Korea, the federal reserve decision to withstand stable and strong interest rates from Megacap technology companies.
Won Korea appreciates 0.3% after US President Donald Trump said the US would charge a 15% tariff for imports from South Korea, which in return to invest $ 350 billion in US projects and buy $ 100 billion in US energy products.
This announcement is the latest from a series of trading policy agreements that were passed before the deadline of August 1 to prevent the imposition of the “Liberation Day” tariff on April 2.
Ringgit Malaysia fell 0.2% after Malaysian Prime Minister Anwar Ibrahim said on Thursday, after a conversation with Trump, that the level of Malaysian goods tariffs will be announced on Friday.
Baht Thailand remained stable after the Thai Minister of Finance said the country hoped to receive information about the US tariff level within 24 hours.
Trump Blitz fares overshadowing the global market, with trade negotiations with India still ongoing after Trump previously announced that the US would impose a 25% tariff on the goods imported from the country. Indian shares fell 0.4%.
Meanwhile, Futures Copper fell 19.4% after Trump said the US would impose a 50% tariff on copper and cable pipes, failed in the hope of restrictions sweeping.
Nasdaq Futures jumped 1.3% after a better income than the estimation of Microsoft (Nasdaq: MSFT) and Meta Platform (Nasdaq: Meta). S&P 500 Futures advanced 0.8%, while European Futures 0.17% was higher.
The area of MSCI’s shares in Asia-Pacific outside Japan fell 0.7%, although it is still on the route for the fourth monthly profit in July.
Stocks in Hong Kong and China led the decline after the official PMI gauge showed economic activities that were weaker than estimates during July.
The Federal Reserve Tariff Determination Committee gave a 9-2 vote on Wednesday to hold a stable interest rate for the fifth consecutive meeting, with two different Fed governors for the first time in more than three decades.
Comments on Chairman of Fed Jerome Powell after the decision underestimated the confidence that the loan cost would begin to fall in September.
The dollar index is at 98,812, only below the highest two months 99,987 touched on Wednesday. The index is regulated to an increase in 3.1% for this month, the first in 2025. [FRX/]
“Although the Federal Reserve decided to keep the interest rates stable in the decision to determine the new tariffs, the possibility of a decline in interest rates at the coming meeting remains alive because they balance the economic data that softened with persistent inflation potential,” said Manusha Samaraweera, Director of Investment Investment in Capital Group.
The growth of the gross US domestic product recovered more than expected in the second quarter, but the details of the report painted an economic picture that lost steam and was disturbed by the uncertainty of Trump’s protectionist trading policy.
The oil price was slightly replaced on Thursday, with Brent Crude Futures for the September delivery, which will end on Thursday, down 0.19% at $ 73.1 per barrel, while the US TEXAS West Texas crude oil for September is flat at $ 70.01 per barrel.
The more active Brent October contract subside 0.14% to $ 72.37 per barrel.
Source: Reuters
