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28/06/24
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Stocks Across Asia to End June with Gains
On June 28, stocks across Asia rose and were ready to end the month with significant gains as markets hope that the Fed will trim interest rates in 2024, based on a cooling United States economy.
However, stocks in China did not perform like their peers in the region in June, partly due to concerns regarding a possible trade war and the country’s economic recovery. Stocks in the region somewhat followed Wall Street’s middling overnight close, as investors continued to stay neutral prior to the release of major inflation data.
United States stock index futures recorded an uptick in Asian trade, as recent economic readings came in soft, prompting speculation that the economy is cooling. Market participants are currently fully focused on forthcoming PCE price index data, which is preferred by the Federal Reserve to measure inflation.
Nikkei 225 and TOPIX recorded about 0.8 percent uptick each, with TOPIX reaching its highest level in three months following Japan’s mixed inflation reading. Core-core inflation fell from 2.4% y/y in April to 2.1% y/y last month, representing its lowest pace of increase since September 2022.
Nikkei 225 and the TOPIX were ready to end June with 3.2 percent and 1.6 percent gains, respectively, after their recovery from a middling performance through Q2 2024. Broader markets in Asia were also ready to end the month with gains; ASX 200 recorded a 0.4 percent uptick, representing a recovery from two consecutive sessions of weak losses, but has gained 1.3 percent in June.
KOSPI saw an uptick of 0.2 percent on Friday and a gain of 5.9 percent this month, mainly due to significant inflows into chipmaking stocks amid AI growth hype. Nifty 50 index has seen almost 7 percent gains this month. Conversely, Shanghai Shenzhen CSI 300 and Shanghai Composite indexes saw an uptick of 0.8 percent on Friday, but are ready to end the month with almost 3 percent losses. Hang Seng index gained 0.6 percent on the way, with more than 1 percent gain this month.
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