Asian markets closed with near-unitary gains at the end of trading on Wednesday, August 13, following Wall Street’s lead, supported by US inflation figures, which raised market expectations of a Federal Reserve interest rate cut. Japan’s Nikkei index hit a record high.
In economic data, figures released from Japan this morning showed that annual inflation (PPI) in Japan slowed for the fourth consecutive month to 2.6% in July, compared to 2.9% in June. Expectations were for growth of 2.5%. This reading and the ongoing slowdown confirm the view of the Bank of Japan, which indicated that upward price pressures from raw material costs may be ending. The Nikkei index closed the session at 43,250 points, up 1.25%, or 531 points, marking a new record high for the second consecutive session. Meanwhile, the Topix index of the Tokyo Stock Exchange rose by approximately 0.73% today, closing at 3,088 points. Yokohama Rubber and Tokyo Electric Power led the Nikkei’s gains, rising by more than 7%.
Chinese indices also recorded gains today, with the broader Chinese CSI300 index rising by approximately 0.67% to close at 4,171 points, while the Shanghai Composite Index of the Shanghai Stock Exchange closed 0.40% higher at 3,680 points.
The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose by approximately 2.32% in pre-closing trading to close at 25,545 points, with Alibaba leading the index’s gains, with gains of more than 5%. Tencent Music Group shares rose more than 16% at the opening bell, boosted by better-than-expected second-quarter revenue of 8.44 billion yuan, an 18% increase.
In contrast, South Korea’s Kospi index rose 0.90% to close at 3,218 points.
India’s Sensex rose 0.26% before closing at 80,443 points, while the Nifty 50 index rose 0.38% to trade at 24,579 points.
New Zealand stock markets closed with gains today, with the NZX 50 index rising 0.0% to close at 12,766 points, while Australia’s ASX 200 index declined 0.60% to close at 8,827 points. Singapore’s main index rose 0.379% in pre-market trading.