Asian markets opened lower on Thursday as investors braced for key US inflation figures and signals from the Federal Reserve, while worries over global political tensions and weaker tech sentiment weighed on risk appetite.
In Tokyo, the Nikkei 225 shed 0.9% in early trade, reversing some of the gains seen earlier in the week as chip-related shares followed the Nasdaq’s overnight retreat. The broader Topix also edged down, dragged by banking and industrial stocks. South Korea’s Kospi fell by 0.7%, led lower by declines in Samsung Electronics and SK Hynix, amid continued uncertainty over chip export demand and sluggish Chinese demand.
Hong Kong’s Hang Seng Index dropped nearly 1.2%, led by a slump in Chinese tech shares after renewed regulatory concerns around gaming and e-commerce platforms. Mainland China’s CSI 300 index slipped 0.4%, with investors remaining wary despite Beijing’s signals of policy support. Market participants remain cautious over the pace and effectiveness of stimulus measures, particularly as property-sector distress and sluggish domestic demand persist.
In Australia, the ASX 200 bucked the trend slightly with a marginal gain of 0.2%, bolstered by mining and energy stocks on stronger commodity prices. However, gains were capped as investors await Friday’s release of core US personal consumption expenditures (PCE) data — the Fed’s preferred inflation gauge.
Currency markets remained relatively steady in Asia, though the dollar retained strength against the yen, hovering around 160.10 as traders speculated about a possible intervention from Japanese authorities. Oil prices were broadly flat, with Brent crude holding near $85 per barrel amid cautious sentiment ahead of US data and OPEC+ output signals.
Looking ahead to Europe, futures point to a modestly weaker open. Traders are digesting a flurry of corporate earnings and assessing how rising political risk in France and broader EU leadership dynamics might shape investor behaviour. Germany’s DAX and France’s CAC 40 are both expected to open down around 0.3%, while the FTSE 100 could see subdued trade, partly reflecting a pause after this week’s inflation surprise cooled UK rate-hike expectations.
In the United States, equity futures were flat to slightly negative ahead of the core PCE release. The S&P 500 and Nasdaq have shown signs of fatigue after a strong June, and traders will be eyeing Fed Chair Jerome Powell’s upcoming remarks for any clues on the path of monetary policy into the second half of the year. The prospect of sustained higher rates continues to weigh on tech valuations, especially with Treasury yields edging up again.
The day ahead will be shaped by inflation nerves, policy outlooks and global political anxieties, leaving markets in a holding pattern until clearer signals emerge.
REFH – newshub finance
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