Asian Markets Are Weaker amid North Korea Tensions
7:45 AM EST – OPEC’s monthly report
8:00 AM EST – U.K. NIESR GDP estimate
8:30 AM EST – US initial jobless claims
8:30 AM EST – US Producer Price Index
10:00 AM EST – US FOMC member Dudley speaks
2:00 PM EST – US Federal Budget Balance Create Alert
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After starting the week on a stronger note and rising for two consecutive trading days, China’s Shanghai Composite Index pulled back on Wednesday. The Chinese market lost strength on Wednesday amid geopolitical concerns regarding North Korea. The Shanghai Composite Index carried the same weakness to Thursday and closed the day with a loss.
Profit-booking in Chinese markets, especially in materials stock, limited the chances of a recovery. Recently, China’s weaker-than-expected economic data along with the decreased global risk appetite impacted the Shanghai Composite Index.
On August 10, the Shanghai Composite Index fell 0.42% and ended at 3,261.75. The market is looking forward to the release of China’s new loans data.
After starting this week on a stable note and rising to fresh two-year highs on Tuesday, Hong Kong’s Hang Seng Index pulled back on Wednesday. The Hang Seng Index started the day with weaker sentiment amid weakness on Wall Street and decreased global risk appetite. The decline in the financial sector also added downward momentum to the Hang Seng Index on Thursday. The Hang Seng Index fell 1.1% and closed the day at 27,444.00. The iShares MSCI Hong Kong ETF (EWH) rose 0.32% to $24.73 on August 9.
Japan’s Nikkei Index started this week on a stronger note amid supporting economic data. However, it fell below 20,000 on Tuesday amid dented market sentiment and increased selling. On August 9, Nikkei fell to two-month low levels amid North Korea tensions. Despite opening higher on Thursday, the Nikkei lost strength as the day progressed and closed almost flat. The Nikkei Index fell 0.05% and closed the day at 19,729.74.
In the next part, we’ll discuss how European markets performed in the morning session on August 10.