Asian stocks mixed with some rising due to hopes of lower U.S. interest rates

From Investing.com: 2024-08-25 22:39:47

Asian stocks were a mixed bag on Monday as Japanese markets retreated due to pressure from the yen. The Nikkei dipped as the yen firmed sharply, with the prospect of rate hikes by the Bank of Japan. Meanwhile, most other Asian markets rose on hopes of lower U.S. interest rates, except for China which lagged due to concerns over its slowing economic recovery.

Regional markets were boosted by Wall Street’s positive lead, with U.S. stock index futures stabilizing in Asian trade. Investors are keeping an eye on key inflation data and earnings from NVIDIA Corporation for cues on the artificial intelligence boom. Meanwhile, hawkish comments from BOJ Governor Kauzo Ueda further fueled expectations of higher interest rates in Japan.

Investors are also closely watching the upcoming inflation data for more clues on the path of Japanese interest rates. The strengthening of the yen pressured export-oriented Japanese stocks, while concerns over higher rates weighed on the technology and export sectors. A stronger yen also undermined carry trade through the currency, affecting high-yield Asian markets.

China’s markets fell as concerns over a slowing economic recovery persisted. The People’s Bank of China withdrawing liquidity from the open market raised worries about the level of support for the Chinese economy. As China continues to struggle with a slowdown, its markets have largely lagged behind its Asian peers, contributing to overall market sentiment uncertainty.



Read more at Investing.com: Asian stocks edge higher on some rate cut cheer, yen strength weighs By Investing.com