Asia-Pacific indexes are mostly losing for another day in a row after the session on Wall Street once again worsened market sentiment.
The leaders of the declines are again the indexes from China, and are losing about 0.50% each. The index from Australia, the S&P/ASX 200, loses 0.40%. Meanwhile, Japan’s Nikkei index is the only one gaining at +0.30%.
Despite the decline, stocks in China saw some recovery after regulators injected a record amount of short-term liquidity into the country’s financial system.
Capital outflows to safe assets continue in the market. Gold gains 0.20%, the dollar also remains strong, while US Treasury bond yields lose 0.90%.
Alongside the dollar, the euro also remains strong, but despite this, the EURUSD pair is trading down slightly, losing 0.05% to 1.0577.
Increased tensions were noted after an American destroyer in the Red Sea intercepted drones and missiles aimed at Israel by Yemeni Houthi rebels. Oil prices surged to over $90 per barrel after drone attacks targeted US outposts in Iraq and Syria.
Japan’s Finance Minister Suzuki expressed concerns about rising global economic uncertainty, particularly in Japan, due to the Middle East conflict. Suzuki highlighted the worsening fiscal situation in Japan.
Japanese CPI data: Overall Nationwide at 3% and Core CPI Nationwide YoY at 2.8%.
PBoC set the Interest Rates as expected: 5 Yr at 4.2% and 1 Yr at 3.45%.
EC President von der Leyen stated that 93% of Hamas’ equipment originates from Iran. She emphasized the importance of increasing sanctions on Iran and addressing evasion.
Cryptocurrencies remain strong in the face of growing uncertainties in global traditional markets. Bitcoin is gaining and is already trading above $29,000.
Information has also emerged regarding long-term cryptocurrency investors. According to on-chain data, this group of investors is growing steadily and is already over 75%, which, combined with the halving in April 2024, could be a significant constraint on the supply side and therefore positively impacting the price.