Asia-Pacific Markets React to Wall Street Rise; Japan’s Economy Slips into Recession Asia-Pacific Markets React to Wall Street Rise; Japan’s Economy Slips into Recession

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By Ronald Tech

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Japan (NKY:IND) +1.21%. Japan’s GDP unexpectedly enters recession in Q4

When Japan’s 10-year government bond yield dropped to around 0.72%, it signaled a retreat from two-month highs, coinciding with the country’s economy unexpectedly falling into a recession for the first time in five years. This downturn has dented hopes for a shift in Bank of Japan monetary policy.

Amid Japan’s data, December Industrial Production (final) surged by 1.4% m/m (prior -0.9%).

China (SHCOMP) markets remain closed, as the country is observing the Spring Festival, a key annual event that halts trading activities.

Traders were excited to venture into new positions after authorities in China projected a record 9 billion domestic passenger trips during the festive season.

Hong Kong (HSI) +0.44%.

India (SENSEX) +0.04%. According to Automobile Manufacturers data, total passenger vehicle sales in India saw an impressive 13.9% surge to 339,441 in January 2024, following a 3.2% rise in December 2023.

Australia (AS51) +0.77%. In January 2024, Australia’s unemployment rate stood at 4.1% (expected 4.0%, prior 3.9%).

Consumer inflation expectations in Australia remained at 4.5% in February 2024, marking the third consecutive month with no change. The level has stayed at its lowest since January 2022, indicating signs of easing cost pressure.

In the U.S. on Wednesday, all three major indexes ended on a high note following a significant sell-off in the prior session, sparked by robust earnings results that allayed concerns about persistent inflation in the nation.

U.S. stock futures showed little movement on Thursday after the major averages staged a broad rebound on the previous day: Dow +0.13%; S&P 500 +0.21%; Nasdaq +0.24%.

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Traders also look ahead to US retail sales figures on Thursday and producer inflation data on Friday, as well as remarks from at least seven Fed officials throughout the week.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

Insights on Asia-Pacific Markets