Source: Sharecast
Major indices in Japan, South Korea and New Zealand meanwhile declined, despite support from Wall Street’s overnight gains and strong US economic data.
“US and European equity-index futures climbed, indicating that the remarkable global stock rally could have further to go as strong economic data eased concerns about the health of the US economy,” said TickMill market strategy partner Patrick Munnelly.
“In Asia, stocks increased by 0.4% as TSMC reached a new high, boosting confidence in AI spending.
“Conversely, Japanese markets fell sharply, as did government bond yields, ahead of the highly anticipated elections this weekend.”
Munnelly noted that the dollar recovered most of its early losses and remained stable after the Federal Reserve’s Christopher Waller suggested that policymakers should consider cutting interest rates this month to support a struggling labour market.
“Examining the latest batch of US data through the lens of inflation, the current picture appears stable, though there are hints of hawkishness ahead.
“Retail sales experienced a rebound in June, which suggests a boost in consumer confidence.
“However, it's important to note that the month-over-month figures can be somewhat misleading and sometimes provide contradictory signals.”
Markets mixed as investors digest US economic data
In equity markets, Australia’s S&P/ASX 200 rose 1.37% to close at an all-time high of 8,757.20, buoyed by a 34.64% surge in biotech firm Mesoblast, along with gains of 8.57% in Pilbara Minerals and 7.77% in Zip Co.
Hong Kong’s Hang Seng Index climbed 1.33% to 24,825.66, led by a 6.51% jump in ZTO Express Cayman, while China Life Insurance and Hansoh Pharmaceutical Group advanced 5.13% and 4.49% respectively.
Mainland China markets also ended higher, with the Shanghai Composite gaining 0.5% to 3,534.48 and the Shenzhen Component up 0.37% at 10,913.84.
Several stocks hit their upper trading limits, including Yunnan Coal & Energy and Liuzhou Iron & Steel, which both rose 10.05%, while Shaanxi Aerospace Power Hi-Tech added 10.04%.
In contrast, Japan’s Nikkei 225 fell 0.17% to 39,834.00, weighed down by a 4.44% drop in Advantest, a 3.8% decline in Sumitomo Realty & Development, and a 3.71% loss in Seven & i Holdings.
The broader Topix index also slipped 0.19% to 2,834.48.
South Korea’s Kospi 100 eased 0.1% to 3,218.95, dragged by steep declines in Sam Yang Foods, down 5.53%, Samsung C&T, which dropped 5.42%, and Samsung Life, which fell 3%.
New Zealand’s S&P/NZX 50 edged 0.19% lower to 12,880.40, led by a 3.85% decline in KMD Brands.
Restaurant Brands New Zealand and Oceania Healthcare lost 2.92% and 2.74%, respectively.
In currency markets, the dollar was little changed against the yen, trading at JPY 148.59.
It weakened 0.47% against the Aussie to AUD 1.5340, and dropped 0.56% on the Kiwi, changing hands at NZD 1.6763.
Oil prices edged higher, with Brent crude futures last up 0.3% on ICE at $69.73 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.43% to $67.83.
In the crypto market, Bitcoin gained over 1% to reach just under $120,700, while Ether surged more than 5% to over $3,600 after the US House of Representatives passed a stablecoin regulation bill.
The measure was now expected to be signed into law by president Donald Trump.
Core inflation eases as expected in Japan
In economic news, Japan’s core inflation eased to 3.3% in June, down from a 29-month high of 3.7% in May, as rice prices began to stabilise.
The reading, which excludes fresh food costs, matched economists’ expectations, according to a Reuters poll.
Headline inflation also moderated, falling to 3.3% from 3.5% in May.
However, the “core-core” inflation rate - a closely watched gauge by the Bank of Japan that excludes both fresh food and energy - edged higher to 3.4%, up from 3.3% in the previous month.
The latest figures suggested price pressures remained elevated despite signs of moderation in food categories, potentially reinforcing expectations that the Bank of Japan will maintain a cautious stance on further policy tightening.
Reporting by Josh White for Sharecast.com.