Asian Markets A Sea Of Red: Japan’s Real Wages Drop For 26th Consecutive Month; China Stocks Fall For Fifth Day

In today’s trading, Asian markets mostly declined as investors anticipated key economic data from the US and China later this week. At the same time, overnight election results in France pointed to a hung parliament. 

In Japan, Nikkei 225 fell 0.32% to close at 40,780.7, while the broader Topix index decreased by 0.57% to close at 2,867.61. These losses occurred as Japan’s real wages declined for the 26th consecutive month. 

Data from Japan’s Ministry of Health, Labor, and Welfare indicated that real wages fell 1.4% year-on-year in May, although nominal wages increased by 1.9% to 297,151 yen ($1,850). May’s figure also marked the fastest wage increase in 11 months. 

The value of loans in Japan grew by 3.2% year-on-year in June 2024, accelerating from a revised 2.9% increase in May and exceeding market expectations of 3.1 growth.

Meanwhile, Japan’s current account surplus increased to JPY 2,849.9 billion in May 2024, up from JPY 2,010.1 billion in the same month last year, surpassing market forecasts of a JPY 2,450 billion increase. 

Hong Kong’s Hang Seng Index fell by 1.68% at 17,524.06, while mainland China’s CSI300 declined by 0.85% closing at 3,401.76, marking its fifth consecutive day of loss and reaching its lowest level since February. 

This decline followed the implementation of provisional EU tariffs on China’s electric vehicles, which took effect on Friday. Simultaneously, the US imposed trade restrictions on two Chinese firms due to their connections with military training. 

Market participants are preparing for a busy week ahead, with the release of key economic indicators including inflation data, trade figures, and the outstanding loan growth rate, all of which are anticipated to offer further insights into China’s economic trajectory. 

Elsewhere in Asia, South Korea’s Kospi fell 0.16% to 2,857.76. Australia’s S&P/ASX 200 went down by 0.8% closing at 7,763.20.