Asian Markets Mixed After Global Sell-Off
Asian markets were mixed on Thursday, following a global sell-off the previous day that saw Wall Street decline across various sectors. The decline was attributed to concerns about rising interest rates and slowing economic growth.
In Japan, data showed that wage growth remains strong, with average cash earnings in July growing 3.6% year-on-year. This beat market expectations and increased the likelihood of another rate hike by the Bank of Japan. The news strengthened the Japanese yen, which traded at 143.48 against the US dollar.
South Korea's Kospi index ended the day 0.3% lower at 2,572.17, as the country's economy contracted by 0.2% in the second quarter, in line with estimates. Hong Kong's Hang Seng index declined 0.6% to 17,353.05, while the Shanghai Composite index was up less than 0.1% at 2,785.80.
US futures fell, while oil prices were higher. On Wednesday, the S&P 500 fell 0.2%, the Nasdaq composite shed 0.3%, and the Dow Jones Industrial Average managed a gain of 0.1%.
The market's pullback came as a government report showed job openings in the US fell unexpectedly in July, a sign that hiring could cool in the coming months. The report also showed that hiring had risen last month, providing a mixed picture of the economy.
Several other reports this week will help give a clearer picture of the economy for the Fed and Wall Street. The Institute for Supply Management will release its services sector index for August on Thursday, and the US will release its monthly jobs report for August on Friday.
Traders are forecasting the Fed will cut its benchmark rate by 1% by the end of 2024. Such a move would require it to cut the rate by more than the traditional quarter of a percentage point at one of its meetings in the next few months.
In the bond market, the yield on the 10-year Treasury fell to 3.76% from 3.83% late Tuesday. The yield on the 2-year Treasury, which more closely tracks potential action from the Fed, fell to 3.76% from 3.87%.
In energy trading, benchmark US crude gained 30 cents to $69.50 a barrel. Brent crude, the international standard, rose 24 cents to $72.94 a barrel.
In currency trading, the euro cost $1.1084, slightly up from $1.1082.