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Pacific-Asian Stocks Rise; China’s Markets Resist

Stocks in Asia-Pacific climbed on Tuesday 5th July 2022 as the Reserve Bank of Australia increased the interest rates as was expected.

The Kospi rose by 1.8% to close at 2,341.78 while the Kosdaq increased by 3.9% to close at 750.95. 

The SK Hynix advanced by 3.82% while the Naver jumped 3.4%.

The Japanese Nikkei 225 rose about 1% to close at 26,423.47 while the Topix Index jumped 0.5% to 1,879.12.

The Hong Kong’s Hang Seng Index rose 0.43% in the wee hours of trading.

In Australia, the S&P/ASX 200 jumped 0.25% at the close of trading at 6,629.3.

As expected, the Reserve Bank of Australia hiked the interest rates by 50 basis points to 1.35%.

Subsequently, the AUD dived immediately after the RBA decision. The last traded was at $0.6854.

The MSCI’s broadest index of the Asia-Pacific Stocks except Japan climbed by 0.58%. 

On the other hand, Chinese stock markets bucked this trend. 

The Shanghai Composite fell to close at 3,403.57. As well, the Shenzhen Component went down by 0.408% to close at 12,973.11.

China’s Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen held a virtual meeting early Tuesday to discuss the macroeconomic issues.

In other news, South Korea data shows that the consumer price index rose by 6% in JUne compared to a similar period last year.

Its one of the fastest rates since 1998, as per Reuters records.

While reporting, Krystal Tan, An ANZ economist noted;

“Price pressures and a hawkish U.S. Fed, at a time when South Korea’s balance of payments is under pressure, strengthens the case for a 50bp rate hike at the [Bank of Korea’s] meeting on 13 July,”

On the other hand, Japan’s service activities grew the most since 2013 as per the au Jibun Bank Japan Manufacturing Purchasing Managers’ Index™ (PMI). The print climbed by 52.6 in May.

The service sector in China also grew. The Caixin Services Purchasing Managers’ Index soared to 54.5 in June from 41.4 in May, as per a report from Caixin and S&P Global.

The U.S. markets are currently closed for the 4th July Independence day holiday.

Crude Future Currencies

Crude Futures and Currencies

The U.S. dollar index that tracks the dollar against other currencies was at 105.163.

The Yen was trading at 136.21 against the green back after weakening beyond 137 against the USD in the previous week.

The U.S. crude futures climbed 1.4% in Asia’s mid-day trading to $109.95 for every barrel. The Brent Crude futures dropped 0.19% to $113.29 per barrel.

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.