Investing.com-- Most Asian stocks rose on Wednesday, tracking strong cues from Wall Street after weak data pushed up hopes for a less hawkish Federal Reserve, with Australian shares leading gains on a softer-than-expected inflation reading.
Wall Street indexes closed higher overnight after U.S. job openings and consumer confidence data read weaker than expected, spurring bets that the Fed will have less economic headroom to keep raising interest rates.
Technology stocks were the key beneficiaries of easing concerns over the Fed, with tech-heavy bourses including South Korea’s KOSPI and Hong Kong’s Hang Seng index up 0.7% and 0.6%, respectively. Strength in tech helped Japan’s Nikkei 225 add 1%.
Futures for India’s Nifty 50 index also pointed to a strong open, with heavyweight tech stocks set to track their global peers.
ASX 200 rallies as soft CPI fuels rate pause bets
The reading showed that aggressive rate hikes by the Reserve Bank of Australia over the past year were now bearing fruit, which in turn gives the central bank less impetus to keep raising interest rates.
But separate data showed that Australian building approvals slid in July, while construction work also grew less than expected in the second quarter, indicating that high interest rates and weak savings were weighing on the country’s real estate market. Australian economic growth is also expected to cool this year with interest rates at over decade highs.
China lags on property jitters, stimulus cheer runs dry
Concerns over the country’s ailing property sector grew after Country Garden Holdings (HK: 2007 ) said it will issue about $34 million in new shares to repay some debt obligations. The firm is also set to report an over $7 billion loss for the first half of 2023 later in the day.
Chinese indexes had marked a strong start to the week after Beijing unveiled new measures aimed at supporting local equity markets, most notably halving the stamp duties collect on stock trading. But analysts had warned the measures would only provide a temporary boost to local markets, given that concerns over the country's economic prospects were growing.
Investors were also growing increasingly impatient with Beijing’s reluctance to roll out more targeted, fiscal measures to support the economy, even as government officials kept talking up more stimulus measures.
Focus is now squarely on purchasing managers’ index (PMI) readings from the country, due on Thursday. The data is expected to show continued weakness in Chinese business activity through August.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.