Asian stocks rise on Fed rate cut expectations, Japan diverges negatively
Expectations that the US Federal Reserve will cut interest rates in September are supporting a positive mood in Asian stock markets, while Japanese markets failed to keep pace with this rise.
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While concerns about the future of the US economy are reducing risk appetite in global markets, investors across Asia have turned their attention to the Fed's interest rate policies. Following weak US employment data, the probability of the Fed cutting interest rates at its upcoming September meeting has begun to be priced in at over 80 percent.
While the expectation has led to optimism in Asian markets, selling pressure has dominated in Japan. Investors point out that despite the trade agreement reached between the US and Japan, trade policy in Japan remains uncertain. Experts stated that Japanese companies expect a decrease in their profits by the end of the year due to the customs tariffs imposed by the US. It was noted that the temporary commercial revival caused by companies pulling their shipments forward in the past to avoid being affected by US taxes will now give way to the potential negative effects of tariff implementations.
US OIL POLICY TOWARD INDIA ALSO ON THE AGENDA
Donald Trump's announcement that he will impose an additional 25 percent tariff on India, which continues to buy oil from Russia, is being closely watched in regional markets. Despite this, it is stated that India will continue its oil imports from Moscow. Within the framework of these developments, while the Indian Stock Market maintains its positive trend, the long-term impact of the new US measures will continue to be monitored.
Regarding company-based developments in the region, it was announced that Chinese electric vehicle manufacturer BYD's production in July decreased by 0.9 percent compared to the same period last year. Thus, BYD's 16-month growth streak has come to an end.
According to the latest data, the Shanghai Composite Index rose 0.66 percent to 3,583.31 points, while South Korea's Kospi index rose 0.91 percent to 3,147.75 points. In Japan, the Nikkei 225 index lost 1.22 percent, closing at 40,300.50 points. As of now, the Hong Kong Hang Seng index is trading at 24,718 points with a 0.9 percent increase, and the Indian Sensex index is trading at 80,906 points with a 0.4 percent gain.