Tuesday 26th March 2024: Asian Markets Navigate Mixed Trends Amid U.S. Market Pause | IC Markets


Global Markets:

  •  Asian Stock Markets : Nikkei up 0.12%, Shanghai Composite down 0.15%, Hang Seng up 0.92% ASX down 0.41%
  • Commodities : Gold at $2172.5 (-0.46%), Silver at $24.47 (-0.13%), Brent Oil at $86.03 (-0.02%), WTI Oil at $81.85 (-0.04%)
  • Rates : US 10-year yield at 4.24, UK 10-year yield at 4.029, Germany 10-year yield at 2.372

News & Data:

  • (USD) New Home Sales m/m 662K vs 675K expected

Markets Update:

Asia-Pacific markets showed a mixed trend on Tuesday as the U.S. market paused after a rally fueled by optimism over the Federal Reserve’s stance on interest rates. Sam Stovall from CFRA Research pointed out that equities have become expensive, with the S&P trading at a 33% premium to its average price-to-earnings ratio over 20 years. He expressed concerns about the market’s vulnerability to a decline.

Investors in Asia analyzed economic data, including Japan’s service producer price index for February, which stood at 2.1%. Singapore’s manufacturing output rose by 14.2% in February after a 6.7% decline in January, contributing to a 0.9% increase in the Straits Times index. Japan’s Nikkei 225 traded 0.12% lower, while South Korea’s Kospi surged by 0.79%, reaching its highest level since February 2022. Australia’s S&P/ASX 200 fell by 0.41% after nearing its all-time high on Monday.

Hong Kong’s Hang Seng index rose by 0.92%, led by energy and industrial stocks, while the mainland Chinese CSI 300 increased by 0.02%. In the U.S., all three major indexes declined, with the Dow Jones Industrial Average down by 0.41%, the S&P 500 dipping by 0.31%, and the Nasdaq Composite falling by 0.27%. The market’s reaction reflected cautious sentiments following the recent Fed meeting and concerns about valuation levels in equities.

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