On Tuesday, Asian Markets ended the session in mostly higher with the exception of Tokyo as markets digested the drop in tech price as selling off prevailed in the US tech sector weighed on markets worldwide.
Meanwhile, currencies in the Asian session were mixed as the dollar gained some lost ground later in the session vs the Yen and the Australian dollar ahead on the expected interest rate hike on Wednesday’s FOMC interest rate decision, followed by a press conference form Fed chair Janet Yellen.
The market is expected to keep an open eye on the press conference for any indications of possible changes on future interest rate hikes, and on any hint in regards to Federal Reserve’s plan on reducing its 4.5 trillion dollar balance sheet.
Recent weak economic data in U.S along with the current sell-off in the tech sector is also expected to weigh on inflation, the U.S generated less jobs than expected in May.
Tech Stock in Asia, experienced a slight recovery after the huge sell-off in the past two sessions.
In Japan, The Nikkei edged lower by 0.52 percent or 9.83 points to trade at 19,898.75 on Tuesday, as weak economic data in the session weighed on prices. As Business Sentiment Index among large manufactures in Japan showed a drop in business sentiment with a read of -2.9 compared to market forecasts of an increase of 1.5.
In China, Hong Kong’s Hang Seng Index was up 0.56 percent or 144.06 points to end the session at 25,852.10. Meanwhile Shanghai Composite rose by 0.44 percent or 13.87 point to 3,153.74 and Dow Jones Shenzhen index surged 4.09 percent or 5.40 percent to settle higher at 502.25.
South Korea index Kospi rose by margin of 0.71 or 16.83 to end at 2,374.70. The index rose after news that Hyundai would be exporting its Kona SUV model to Europe and the U.S. Meanwhile South Korea’s biggest stock Samsung rose 0.5 percent after tumbling by 1.6 percent on Monday.
Elsewhere, Australian Equities soared after markets were closed on Monday for a Public holiday. The S&P ASX 200 soared by 1.17 percent or 94.96 percent to trade at 5,772.77, Equities were led up by strength in overall Aussie market, especially by strength in Financials, A-REITs and Energy sectors.
The National Australia Bank released its May business confidence survey that showed a plus-7 figure, down from the previous reading at plus-13 and its business survey at plus-12, also down from the previous figure at plus-14.
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