Asia-Pacific markets opened predominantly higher on Thursday, with investors awaiting key business activity data from Australia, Japan, and India as the trading day progresses.
The recent decision by the Bank of Korea to maintain its benchmark interest rate at 3.5% aligned with expectations, though market participants are keenly watching for any indications of potential policy adjustments in future communications.
The Bank of Korea decided to keep its benchmark interest rate steady at 3.5%, a move that was anticipated by market observers.
Traders are particularly interested in the language of the accompanying press release to gauge any hints regarding possible future rate cuts.
The decision follows global economic trends and local economic conditions that are currently under review.
This decision comes in the wake of the Federal Reserve’s release of minutes from its July meeting.
The minutes indicated that while some Federal Reserve members had advocated for a rate cut in July rather than waiting until September, most participants suggested that if economic data remained consistent, an easing of policy could be more appropriate at the upcoming meeting.
Japan’s Nikkei 225 rises 1.03%
In Japan, the Nikkei 225 increased by 1.03%, reflecting positive investor sentiment.
The Topix index also saw a modest gain of 0.32%. Japan’s business activity data showed a notable expansion in August, with the composite purchasing managers’ index (PMI) climbing to 53.0 from 52.5 in July.
This improvement was driven by a rebound in the manufacturing sector and faster growth in the services sector.
South Korea’s Kospi shows marginal increase
South Korea’s Kospi index experienced a slight increase, while the small-cap Kosdaq index fell by 0.53%.
The mixed performance reflects ongoing regional economic dynamics and investor sentiment influenced by global market trends and local economic indicators.
Hong Kong and mainland Chinese indices experience minor movements
In Hong Kong, the Hang Seng Index rose by 0.35%, reflecting a generally positive market outlook. Meanwhile, the mainland Chinese CSI 300 index traded slightly above the flatline, indicating a stable but cautious market stance.
Australia’s S&P/ASX 200 up 0.25%
Australia’s S&P/ASX 200 gained 0.25% following an increase in the country’s flash composite PMI for August. The index rose to 51.4 from 49.9 in the previous month, marking a three-month high.
The improvement was supported by a rise in services activity, according to Judo Bank.
U.S. markets gain
In the United States, all three major stock indices closed higher, buoyed by the Federal Reserve’s minutes which reinforced expectations of potential rate cuts.
The S&P 500 rose by 0.42%, nearing its all-time high. The Nasdaq Composite increased by 0.57%, and the Dow Jones Industrial Average edged up by 0.14%.
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