Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note with South Korea’s Kospi (-5.4%) falling to its lowest level since late May.
Japan’s Nikkei: -2.1%,
Hong Kong’s Hang Seng: +3.0%,
China’s Shanghai Composite: -0.5%,
India’s Sensex: -2.2%,
South Korea’s Kospi: -5.4%,
Australia’s ASX All Ordinaries: -0.3%.
Hong Kong’s Hang Seng (+3.0%) outperformed with chip and AI-related stocks contributing to the advance amid reports that Chinese officials could restrict foreign access to the country’s top AI models.
The Reserve Bank of New Zealand raised its official cash rate by 25 basis points to 2.50%, as expected.
Japan
The yen is back near this year’s low against the dollar even though Bank of Japan policymaker Asada dropped his opposition to rate hikes, strengthening the central bank’s hawkish bias.
May Current Account surplus JPY3.06 trln (expected surplus of JPY3.19 trln; last surplus of JPY4.21 trln).
June Bank Lending 5.7% yr/yr (expected 5.8%; last 5.7%).
June Economy Watchers Current Index 44.0 (expected 44.3; last 43.6)
South Korea
May Current Account surplus $38.61 bln (last surplus of $28.29 bln)
Australia
May Building Approvals -1.1% m/m, as expected (last -0.2%); 5.3% yr/yr, as expected (last 10.9%)