Asian Market Mostly Showed Gains, Japan’s Nikkei 225 Hits Another Record High

In today’s trading session, the Asian market mostly gained as the Nikkei hit a new all-time high, tracking a mixed session on Wall Street with a keen focus on the upcoming inflation data and earnings season.

Nikkei’s 225 index surged 2% closing at 41,580.17 marking a new all-time high. Enthusiasm over artificial intelligence-related technologies and a weak yen continued to drive equities higher. 

Technology-related shares led the gains, with Tokyo Electron soaring 3.8%, and Advantest climbing 4.1%. Precision tools maker Disco Corp. increased by 2.5%, while Shin-Etsu Chemical rose by 2.7%. 

In China, the Shanghai Composite index rose by 1.26% reversing earlier losses and rebounding slightly from five-month lows as investors look forward to significant upcoming economic data, particularly China’s inflation figures set to be released the following day to gauge the economic outlook.

Yesterday, the People’s Bank of China (PBoC) tightened its grip on interest rates by launching a new mechanism to influence short-term borrowing costs. 

Meanwhile, China-EU trade tensions mounted, with Beijing planning an anti-dumping hearing next week regarding brandy imported from the EU.

Moreover, China’s trade figures, loan data, and vehicle sales numbers are expected later this week, offering further insight into economic trends and consumer behavior. 

Hong Kong’s Hang Seng index edged up by 0.09%, slipping for the fourth consecutive session and nearing its lowest level in 11 weeks amid losses across all sectors. 

India’s SENSEX rose by 0.38%, halting losses from the previous two sessions and reaching a fresh record peak, buoyed by foreign capital inflows and expectations of a dovish statement from the Federal Reserve Chair. New data from the Reserve Bank of India (RBI) revealed that the employment rate increased to 6% in FY2024, the highest since 1982, up from 3.2% in FY2023. 

In Australia, the S&P/ASX 200 gained 0.86% despite a decline in consumer confidence in July due to ongoing concerns about hight inflation, elevated interest rates, and a weak economy, business sentiment surged to a 17-month high in June.