Precise Investors

Saturday, July 2, 2022
Latest News

Asia-Pacific shares struggle as investors react to U.S. data


Asia-Pacific markets struggled after stocks in the U.S. were back from a sharp sell-off as a strong U.S. jobs report improved optimism for a quicker economic recovery

Markets in the Asia-Pacific struggled for gains by Monday afternoon as investors reacted to last week’s U.S. jobs report that beat expectations and fuelled hopes for a faster economic recovery.

Australian shares finished the session in green but retraced most of their earlier gains. The benchmark ASX 200 added 0.43% to 6,739.60 as most sectors traded higher, with the heavily-weighted financials subindex gaining 0.5%. Major banking and mining stocks were broadly higher: Shares of Commonwealth Bank climbed 1.01% while Rio Tinto gained 2.91%, Fortescue rose 0.5% and BHP advanced 2.38%.

In Japan, the Nikkei 225 reversed gains to end 0.42% lower at 28,743.25 as banking stocks gained. Mitsubishi UFJ Financial Group shares added 2.83%, Sumitomo Mitsui Financial Group rose 2.14% and Nomura shares advanced 3.17%. Elsewhere, the Topix index also gave up earlier gains to close down 0.14% to 1,893.58.

Meanwhile, South Korea’s Kospi shed 1% to 2,996.11. In Hong Kong, the Hang Seng index dropped 1.85% in late-afternoon trade while the Hang Seng Tech index declined 6.69%.

Chinese mainland shares also fell: The Shanghai composite fell 2.3% to 3,421.41 while the Shenzhen component declined 3.81% to 13,863.81. Elsewhere, shares in India and Singapore advanced in afternoon trade.

Monday’s session in Asia-Pacific followed a wild day in U.S. markets last Friday, where stocks were back from a sharp sell-off as a stronger-than-expected nonfarm payrolls report improved optimism for a quicker economic recovery.

Investors remain wary of the impact that the massive Biden fiscal experiment will have on longer-term interest rates, making for a fragile equity environment, analysts at ANZ Research said in a morning note on Monday. That defensiveness may prevail into the mid-March (Federal Open Market Committee) meeting.

The U.S. Senate passed a $1.9 trillion pandemic relief package over the weekend that includes direct payments of up to $1,400 to most Americans. The bill is expected to pass in the Democratic-held House this week and sent to President Joe Biden for his signature before a March 14 deadline to renew unemployment aid programs.


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