In July, US consumer spending increased by the most in comparison to the previous six months, but dipping monthly inflation rates reinforced expectations that the Federal Reserve would keep interest rates unchanged in the upcoming month.
MSCI’s broadest index of Asia-Pacific shares outside Japan increased 0.15%, while Japan’s Nikkei was up by 0.45%.
All eyes are on Beijing’s efforts to rescue the diminishing housing industry and poor consumer spending, which are weighing hard on the Asia-Pacific economy.
Earlier in August, China’s factory activity surprisingly returned to expansion, exceeding expectations, according to a private-sector survey. Supply, domestic demand, and employment all improved, indicating that government measures to boost GDP are having an influence.
Meanwhile, the country’s central bank also said that it will cut the amount of foreign exchange rates that monetary firms must hold as reserves for the first time this year, aiming to slow the pace of the yuan’s downshift recently.
However, after the cuts, the onshore yuan of China strengthened to 7.2360 per dollar in early trade, following a statement that cut the down payment requirement in select cities and existing mortgage interest rates for first-time homebuyers.
Moreover, China’s benchmark index was up 0.63% from the previous price point, with real estate estimates climbing by 0.97% further.
Additionally, Hong Kong’s cash stock market was closed for the day as super typhoon Saola occurred in southern China, but Hang Seng index futures, on the other hand, rose 0.23%.
Redmond Wong, market strategist at Saxo Markets in Hong Kong, said,”Even though Beijing’s support measures so far are not large in scope, the fact that policymakers are announcing steps more rapidly may be giving markets confidence that authorities are now being more proactive.”
Australia’s S&P/ASX 200 index dipped 0.39% in early trading.
Also, hitting the benchmark of 10-year notes yield declined by 1.7 basis points to 4.1081 percent, from 4.091 percent.
Moreover, US crude surged 0.24% to $83.83 per barrel, and Brent was at $87.03, which is forecast to be up 0.23% at this time.
Spot gold gained 0.1% to $1,942.18 per ounce.
- Published By Team Genuine Reporter