Asian Shares Mixed Ahead Of Powell’s Speech

Asian shares ended mixed on Wednesday as China industrial profits data disappointed and a softer than expected headline inflation figure in Australia raised the prospect of a pause in interest rate rises from the Reserve Bank of Australia.

Investors shifted their focus to upcoming Fed Chair Jerome Powell’s speech after a slew of upbeat U.S. economic data pointed to a resilient economy.

The dollar traded weak in Asian trading and gold hovered near three-month lows while oil prices edged up slightly after the release of a mixed industry report on U.S. crude stockpiles.

China’s Shanghai Composite index cut early losses to end marginally lower at 3,189.38 as weak industrial profits data for May underscored the uneven nature of economic recovery and fueled the debate over the need for additional stimulus.

China’s industrial profits declined 18.8 percent year-on-year in the January to May period amid weak demand and falling producer prices, the National Bureau of Statistics said earlier today.

Hong Kong’s Hang Seng index fluctuated before ending up 0.12 percent at 19,172.05.

Hua Hong Semiconductor dropped 1.4 percent after reports that the U.S. is considering new restrictions on exports of artificial intelligence chips to China.

Gains in technology stocks lifted Japanese markets, with the Nikkei average rallying 2.02 percent to 33,193.99 after four days of losses. The broader Topix index climbed 1.99 percent to 2,298.60.

Advantest, Tokyo Electron and Screen Holdings climbed 3-4 percent while Uniqlo clothing chain operator Fast Retailing advanced 1.6 percent.

Automakers Honda and Toyota surged 2-3 percent after the yen hit its lowest since November. Higher bond yields lifted financials, with Nomura Holdings gaining 3.7 percent.

Shipping stocks underperformed after rallying in the previous two sessions. Kawasaki Kisen Kaisha plummeted 6.2 percent.

Seoul stocks fell notably on the back of weak Chinese data and amid caution ahead of Powell’s speech at a forum in Portugal later in the day. The Kospi average fell 0.67 percent to 2,564.19.

South Korea’s consumer sentiment improved in June to the highest level in thirteen months, as households’ current and future living conditions improved amid an ease in inflation, survey results from the Bank of Korea showed today.

Australian stocks rose sharply after the weighted inflation rate for May came in at 5.6 percent, sharply lower than April’s figure of 6.8 percent. Headline inflation came in at 5.8 percent for the month, the lowest recorded rate since April 2022.

The benchmark S&P/ASX 200 rose 1.10 percent to 7,196.50, marking its largest single-day gain since April 11. The broader All Ordinaries index closed 1.15 percent higher at 7,384.10.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index rose 0.72 percent to 11,733.46.

U.S. stocks advanced overnight on economic optimism on the back of positive economic data.

New orders for key manufactured capital goods unexpectedly rose in May, sales of new single-family homes surged in the month and a measure of U.S. consumer confidence surged to a near 1-1/2 year high in June, helping ease concerns about an impending recession.

The Dow gained 0.6 percent to snap a six-session losing streak, while the S&P 500 climbed 1.2 percent and the tech-heavy Nasdaq Composite rallied 1.7 percent.

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