Asia-Pacific Markets Stumble Amid Mixed Economic Signals
The yen stabilized near a 12-week high against the dollar, while Asia-Pacific equity markets faced declines following Wall Street losses. Taiwan's stock benchmark dropped 3.3%, but some markets rebounded. Optimism grew due to faster-than-expected U.S. economic growth and cooling inflation. Oil prices rose slightly on increased crude demand expectations.
![Asia-Pacific Markets Stumble Amid Mixed Economic Signals](https://devdiscourse.blob.core.windows.net/aiimagegallery/18_07_2024_00_38_38_3450272.png)
The yen stabilized near a 12-week high against the dollar on Friday, while Asia-Pacific equity markets remained on edge following a heavy sell-off in Wall Street. The S&P 500 and tech-heavy Nasdaq continued their declines, triggering a 0.55% dip in MSCI's broadest index of Asia-Pacific shares.
Taiwan's stock benchmark dropped 3.3% after reopening from a typhoon-related closure. Japan's Nikkei slipped 0.07%, failing to sustain early gains. However, markets like Hong Kong's Hang Seng and Australia's benchmark showed signs of recovery, rising by 0.74% and 0.85% respectively. U.S. stock futures also pointed toward gains.
Strong U.S. economic data provided some relief, hinting at faster growth and cooling inflation, which may prompt a Federal Reserve rate cut in September. The yen lost some of its safe-haven demand after a strong week, with potential shifts in market sentiment expected ahead of key central bank meetings.
(With inputs from agencies.)