Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Most Asian stocks climbed on Thursday, buoyed by upbeat sentiment following record highs on Wall Street. The rally came despite looming regional challenges, including economic contractions in Japan and escalating trade tensions between the U.S. and China.
The positive lead from Wall Street, driven by softer-than-expected consumer inflation data, overshadowed concerns in Asian markets. Japan’s Nikkei 225 index saw a 0.6% rise, primarily led by gains in technology stocks. However, the broader TOPIX index retreated amidst worries about Japan’s contracting economy. The country’s GDP data for the first quarter of 2024 revealed a sharper-than-expected contraction, raising doubts about the Bank of Japan’s policy tightening amid persistent uncertainties.
In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes lagged behind their regional peers, rising approximately 0.3% each. Heightened trade tensions with the U.S. added to sentiment woes, as the Biden administration imposed higher tariffs on key Chinese sectors, including electric vehicles, medicine, and solar energy. Beijing’s threat of retaliatory measures fueled concerns of a potential trade war resurgence between the world’s largest economies. Moreover, anticipation of forthcoming economic data, including industrial production and retail sales, added to caution in the region.
Despite these challenges, other Asian markets displayed resilience. Australia’s ASX 200 led gains, rallying 1.8% and nearing record highs. South Korea’s KOSPI also experienced positive momentum, driven by gains in technology stocks. However, concerns lingered over the 2024 Indian general elections, tempering potential market enthusiasm. Futures for India’s Nifty 50 index indicated a positive open, but caution prevailed amidst political uncertainties.
Overall, the rise in Asian stocks amidst regional challenges underscored the impact of softer U.S. inflation data, which boosted investor sentiment and overshadowed broader economic concerns.
