Asian Markets Tend to Be Cautious Following US Data Release
Asian stock markets opened without a clear direction on Wednesday (August 6th), after weak US services sector data fueled uncertainty about the direction of the Federal Reserve's interest rate policy. The Nikkei 225 index was flat, South Korean stocks weakened, while the Australian stock market recorded gains. The MSCI Asia Pacific Index edged up 0.2%, while the US dollar weakened slightly and US bond yields stabilized after falling in the previous session.
Investors' focus turned to China after President Donald Trump stated he was "very close" to a trade deal with Beijing. Meanwhile, Wall Street lost momentum ahead of a new record high on Tuesday evening, despite Advanced Micro Devices' better-than-expected sales projections, but remained wary of China's market access. Super Micro Computer shares, however, slumped after disappointing earnings.
Uncertainty over the Fed's interest rate policy is a major market focus. Recent data showed the US services sector stagnated in July, with companies laying off workers due to weak demand and rising costs. This added to investor anxiety after previously weak employment and consumption data.
Meanwhile, President Trump has threatened to raise tariffs on countries buying energy from Russia, including China, and to add new tariffs on semiconductors and pharmaceuticals in the near future. Switzerland is also working to negotiate the 39% tariffs recently imposed by the US, while India is preparing to announce its interest rate decision amid global economic pressures. (ayu)
Source: Newsmaker.id
