Asia-Pacific markets were a mixed bag Thursday following Wednesday’s sell-off, with Japan’s Nikkei 225 and South Korea’s Kospi among the biggest decliners.
Japan’s Nikkei slid 0.73%, weighed down by fresh wage data. Average monthly earnings in July rose 3.6% year-over-year, a dip from June’s 4.5%.
After adjusting for inflation, real wages inched up 0.4%, continuing June’s upward trend.
These stronger pay figures could give the Bank of Japan more room to hike rates, a move likely to pressure equity markets.
Bank of Japan board member Hajime Takata said the central bank “must keep raising rates if it can confirm that companies will continue to increase spending and wages,” according to Reuters.
Meanwhile, South Korea’s Kospi also saw a slight dip, while the small-cap Kosdaq was down 1%. A bright spot emerged in tech, as shares of SK Hynix jumped 3.36%.
The chipmaker is set to start mass-producing HBM3E chips by the end of September, strengthening its position in the AI chip market.
In Australia, the S&P/ASX 200 edged up 0.18%. Export figures for July showed a modest 0.7% rise, while imports dipped by 0.8%.
Additionally, telecom giant Optus received approval from Australian regulators for its regional network and spectrum-sharing deal with TPG Telecom, intensifying competition in the telecom industry.
In China, the Hang Seng index fell 0.33%, though the mainland’s CSI 300 showed a slight uptick.
Investors were cautiously optimistic following reports that China is considering a two-step interest rate cut to shore up its struggling property sector.
Key players in Hong Kong-listed developers saw shares inch higher—China Vanke added 1.5%, while Logan Group gained 1.32%.
China’s regulators are reportedly pushing for cuts on up to $5.3 trillion in outstanding mortgages, a move aimed at reducing borrowing costs and easing pressure on the banking sector.
In the U.S., markets mirrored the cautious sentiment, with the S&P 500 losing 0.16% and the Nasdaq Composite down 0.3% for a second consecutive session.
The Dow Jones Industrial Average, however, managed to edge up 0.09%.
This week’s market movements underscore the delicate balance between inflation, wage growth, and central bank decisions.
As businesses navigate these shifting dynamics, investors are closely watching to see if these developments will fuel growth or stall economic progress in the region.
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