Asian markets closed mixed at the end of trading on Monday, July 28, the opening session of the week. Japanese markets closed lower, coinciding with the absence of economic indicators in the opening session and anticipation of the Bank of Japan’s meeting on Thursday. Chinese indices rose at the end of the session, as markets await the trade meeting between China and the United States in Stockholm today, where it is expected that the trade truce agreed upon in June will be extended.
US President Trump told reporters on Sunday that his administration was close to reaching a trade agreement with China, but he did not provide any details.
Conversely, expectations are rising that the Bank of Japan will resume raising US interest rates this year following the trade agreement with the United States. Expectations indicate a quarter-basis point interest rate hike in October. The bank is expected to revise its growth and inflation forecasts in its quarterly report, which will be released Thursday following the bank’s meeting, presenting a more positive outlook, especially since its previous outlook was based on the impact of expected tariffs. The Nikkei index closed at 40,998, down 1.10%, or 457 points, while the Topix index of the Tokyo Stock Exchange fell by approximately 0.72% today, closing at 2,930. Semiconductor equipment manufacturer Advantest led the Nikkei’s losses, falling more than 8% after the company announced it was disposing of its treasury shares as restricted stock. Shares of SCREEN Holding fell by more than 9% after the chip equipment manufacturer announced a 12.2% decline in operating profit for the second quarter.
Chinese indices recorded gains today, with the broader Chinese CSI300 index rising by approximately 0.32% to close at 4,140 points, while the Shanghai Composite Index closed 0.12% higher at 3,597. The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose by approximately 0.62% today, closing at 25,545 points, led by gains in Sino Biopharmaceutical, which rose by more than 6%.
In contrast, the South Korean Kospi index rose by approximately 0.42% today, closing at 3,209 points.
Samsung shares rose by more than 6% today after announcing a $16.5 billion contract to supply semiconductors to Tesla, the electric car company.
India’s Sensex index fell by approximately 0.26% before closing at 81,251 points, while the Nifty 50 index fell by approximately 0.43%, trading at 24,730 points. New Zealand stock markets closed with gains today, with the NZX50 index rising 0.45% to close at 12,910 points, while Australia’s ASX200 index rose 0.36% to close at 8,697 points. Singapore’s main index fell 0.30% in pre-market trading.