Address

Precise Investors

Sunday, June 20, 2021
Stocks & Shares

Asia Pacific mixed as global economic recovery continues

global economic recovery

Nikkei 225 inched up 0.16%, KOSPI rose 0.20%, ASX 200 edged down 0.07%, Hang Seng Index shed 0.10%, Shanghai Composite inched down 0.17% while the Shenzhen Component rose 0.26%

Asia Pacific stocks were mixed Tuesday morning, but moves remained small. Investors continue to await further clues on the inflation outlook as the global economic recovery from the pandemic continues

Japan’s Nikkei 225 inched up 0.16% by 2:32 AM GMT. The country released its Gross Domestic Product (GDP) earlier in the day, which contracted 1% quarter on quarter for the first quarter of 2021.

South Korea’s KOSPI inched up 0.20%.

In Australia, the ASX 200 edged down 0.07%. Data released earlier in the day said that the National Australia Bank (NAB) Business Confidence Index jumped to 20 in May, higher than the previous month’s 17 reading. The NAB business survey also increased to 37, higher than April’s 32 figure.

Hong Kong’s Hang Seng Index edged down 0.10%.

China’s Shanghai Composite inched down 0.17% while the Shenzhen Component rose 0.26%.

U.S. shares were little changed at the close of the previous session but hovered near record levels. Biogen Inc. stocks rallied after the company received FDA approval for its Alzheimer’s drug aducanumab, which will be sold under the Aduhelm name.

Investors now await U.S. inflation data for May, including the consumer price index (CPI), due later in the week. Also on the radar is a U.S. Federal Reserve policy decision to be handed down in the following week that will be scrutinized for signs of asset tapering.

When the FOMC will begin tapering its asset purchase program is still front and centre for market participants, Commonwealth Bank of Australia currency strategist Kim Mundy said in a note.

Investors could reconsider that timeline following the inflation print, with Mundy expecting the Fed to discuss tapering in July or September.

However, other investors remained optimistic that the Fed would maintain its current dovish policy for now.

We advocate looking through near-term market volatility and remain pro-risk, predicated on our belief that the Fed faces a very high bar to change its easy monetary policy stance, BlackRock Investment Institute strategists led by Elga Bartsch said in a note.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

sixteen + 3 =