Asia’s Market Braces for Earnings Season and US Inflation Data Asia’s Market Braces for Earnings Season and US Inflation Data

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By Ronald Tech


Japan’s Nikkei 225 Index rose by 1.08% amid a rise in consumer confidence to 39.5 from the previous 39.1 reading. However, machine tool orders in Japan fell by 8.5% year-on-year to JPY 135,647 million in March 2024, marking an acceleration from the previous month’s decline. This data was released by the Japan Machine Tool Builders’ Association, underscoring challenges in the manufacturing sector.

Meanwhile, China’s Shanghai Composite Index edged up by 0.07%. Investors are eagerly awaiting the latest inflation figures from China. Sentiment was slightly dampened after US Treasury Secretary Janet Yellen hinted at the possibility of imposing tariffs on China’s green energy exports, raising concerns of a trade dispute.

Hong Kong’s Hang Seng Index also saw a positive trend, gaining 0.89%. At the same time, India’s Sensex Index climbed by 0.41%, surpassing the 75,000 mark for the first time. The market’s optimism was fueled by expectations of favorable outcomes from the upcoming general elections, driving the index to a new record high for the third consecutive session.

Australia’s ASX 200 Index experienced a modest increase of 0.45%. The country’s monthly consumer confidence dipped by 2.4% month-on-month, while the NAB business confidence index improved to 1 in March 2024 from 0 in the previous month, indicating a mixed sentiment among consumers and businesses.

In the US, the major stock indexes closed virtually unchanged on Monday as investors prepared for crucial inflation data and the commencement of the earnings season. The focus now shifts to the upcoming US inflation figures and the release of the FOMC meeting minutes later this week.

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US stock futures showed resilience on Tuesday following a flat performance in the previous session. The Dow Jones Industrial Average edged up by 0.01%, the S&P 500 rose by 0.08%, and the Nasdaq Composite gained 0.13%, showing underlying stability in the market amid anticipation of upcoming economic indicators.

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

Insights into Asia’s Market

  • Australia reports the smallest trade surplus in five months as exports decline while imports increase, highlighting trade challenges faced by the country.

  • Janet Yellen visits China to address concerns regarding ‘unfair trade practices’ and ‘industrial overcapacity,’ signaling ongoing trade discussions between the US and China.