Closing Bell 24th April: Higher CPI pushes back rate cut forecasts

What's Affecting Markets Today

Asian markets rally

Asian stock markets closed higher, buoyed by a sustained rally on Wall Street and upbeat regional performances. Japan’s Nikkei 225 led the surge, rising 2.3%, while the broader Topix index advanced 1.56%.

In economic news, Australian inflation data showed a 3.6% increase in the consumer price index year-over-year, slightly above expectations but marking a fifth consecutive quarter of deceleration. This influenced the S&P/ASX 200, which ended slightly up by 0.06%.

South Korea’s Kospi index rose 1.91%, with Samsung Electronics contributing significantly with a 4% gain. The Kosdaq also increased by 1.94%. In Hong Kong, the Hang Seng index climbed 1.67%, and the Hang Seng Tech index saw a 2.6% gain. Trading in Sensetime shares was halted after a dramatic 31.2% rise.

China’s CSI 300, however, remained unchanged.

ASX Stocks

ASX 200 - 7,691.7 (+0.1%)

Key Highlights:

The Australian stock market saw a modest uptick, with the S&P/ASX 200 index rising slightly by 0.1% to 7690.9, primarily driven by gains in the financial sector. This subdued growth follows stronger-than-anticipated inflation data from the Australian Bureau of Statistics, which showed a quarterly rise of 1% in the consumer price index, surpassing expectations of 0.8%. Yearly, inflation eased to 3.6% from 4.1%, reinforcing expectations that the Reserve Bank of Australia may delay any interest rate cuts.

The Australian dollar appreciated to US65.21¢, a 0.5% increase, rebounding from recent lows amid geopolitical tensions in the Middle East.

In other market news, Perpetual’s shares fell 3.1% after reporting significant net outflows, while Cleanaway Waste Management’s stock dropped over 11% amid takeover speculation denials. Meanwhile, furniture retailer Nick Scali is set to acquire UK-based Anglia Home Furnishings, enhancing its international presence.

Leaders

FPH Fisher & Paykel Healthcare 4.60%
SQ2 Block Inc 4.24%
NGI Navigator Global Investments Ltd 4.13%
TLX TELIX Pharmaceuticals Ltd 3.92%
APM APM Human Services Int 3.83%

Laggards

CWY Cleanaway Waste -11.13%
ZIP ZIP Co Ltd -5.33%
ADT Adriatic Metals Plc -4.81%
SGR The Star Entertainment Group Ltd -3.61%
AZS AZURE Minerals Ltd -3.41%

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