Asian markets closed lower on Tuesday, June 3, with Japanese indices posting declines, weighed down by a decline in Japanese government bond yields, while the Hang Seng Index led gains in Chinese markets.
Bank of Japan Governor Ueda indicated in his remarks to parliament this morning that the central bank will raise interest rates after being convinced that economic and price growth will accelerate again after a period of stagnation, while confirming that it will continue to reduce its bond purchases even after the March plan ends.
Government bond futures rose today as the bid index at the auction rose to its highest level since April 2024. According to Japanese Ministry of Finance figures for the auction, the bid-to-cover ratio rose to 3.663 times, compared to 2.544 times in the May auction. Meanwhile, some figures showed an estimated $7.49 billion in Japanese equity fund investments exited last week, the worst capital outflow since 2007.
In economic data released this morning, figures from China showed a deterioration in the manufacturing sector in May, according to the Purchasing Managers’ Index (PMI), with new orders falling again and export orders shrinking to their lowest levels since July 2023. The revised Caixin Index fell to -48.3 points in May from 50.4 in April, trading below the 50 level for the first time in eight months, demonstrating the clear impact of the heavy tariffs.
The Nikkei index closed the session at 37,446 points, down 0.06%, or 467 points. The Topix index of the Tokyo Stock Exchange fell today by about 0.22%, closing at 2,771 points. Suzuki Motor and Tokyo Gas led the Nikkei’s losses, falling more than 3.5%. Chinese indices recorded gains in today’s session, with the broader CSI300 index closing with gains of approximately 0.31%, closing at 3,852 points, while the Shanghai Composite Index closed 0.43% higher at 3,361 points.
The Hang Seng Index, the main index of the Hong Kong Stock Exchange, rose approximately 1.53% today, closing at 23,512 points, with gains in Li Auto and BYD leading the index’s gains, with increases of more than 3.5%.
Shares of Chinese company Xiaomi rose more than 3% today after the company’s founder, Lei Jun, announced that he expects the company’s automotive business to turn a profit in the second half of this year.
India’s Sensex index fell approximately 0.66% before closing at 80,829 points, while the Nifty 50 index fell approximately 0.61%, trading at 24,564 points. New Zealand stock markets closed with losses today, with the NZX50 index falling 0.74% to close at 12,327 points, while Australia’s ASX200 index rose 0.63% to close at 8,466 points. Singapore’s main index fell 0.14% in pre-market trading.