Asia Pacific stocks were in hot water as their economic data from the US sales turned out to be disappointing, pointing to a potential interest rate cut at the upcoming meeting in July.
Nikkei 225 closed at 21,702.45, which is 0.3% higher than last week, as Softbank Group, an index heavyweight, rose 3%. Topix saw a 0.65% increase as well. South Korean markets saw a rise of 0.61% in Kospi shares, while Australian S&P/ASX 300 also gained 0.49% on its points, ending the trading day at 6,718.00.
Mainland China saw a dip in shares the same day as Shanghai Composite fell 0.33%, concluding at 3,005.25 and the Shenzhen component decreased by 0.55, to a 9,368.30.
The Hong Kong Hang Seng Index saw a sliver of decline in the last hour of the trading day. Wednesday’s collection of data has pointed out that private payrolls in America have shown less than expected increases, leading analysts to believe that the interest rates may be lowered. As of last month, the Federal Bank stated that its policy may be altered to act in benefit of the current expansion of the economy.
The Dow Jones Industrial Average has jumped overnight by 179.32 points, finishing its day at 26,996 – an all-time closing time high. The Nasdaq Composite finished with the addition of 0.7% and S&P 500 saw an increase of 0.7% as well.
Wall Street Markets will be closed on account of Fourth of July this week. Investors will keep an eye on the US nonfarm payrolls report which will be released on Friday.
Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a note that the US non-farm payrolls report has always made a big difference to the US Markets and other currencies. However, this month’s report may make bigger ripples than before.