What's Affecting Markets Today
Asian markets mostly lower
Asian-Pacific stock markets predominantly experienced gains on Thursday, buoyed by the U.S. Federal Reserve’s decision to maintain stable interest rates following its latest meeting. Fed Chair Jerome Powell dismissed any immediate rate hikes, mitigating concerns about the central bank’s ability to control inflation. The Hong Kong Hang Seng Index rallied to lead regional gains, climbing 2.13%, while the Hang Seng Tech index advanced by 4% due to a surge in Chinese electric vehicle stocks after positive April delivery reports.
Markets in Mainland China remained shuttered in observance of the Labor Day holiday.
Attention shifted to the Japanese yen, which displayed early-week volatility amid rumors of government intervention to support the currency. The yen was trading at 156.04 against the U.S. dollar. Japan’s Nikkei 225 slightly increased, and the Topix index inched up by 0.11%. In South Korea, the Kospi dipped by 0.12%, and the Kosdaq remained unchanged as investors reviewed the latest consumer price index data, indicating a deceleration in inflation in April compared to March.
ASX Stocks
ASX 200 - 7,587.0(+0.2%)
Key Highlights:
Australian stocks advanced on Thursday, marking the third day of gains in four sessions despite previous concerns that high interest rates might persist. By midday, the S&P/ASX 200 had risen by 0.5%. This uptick was partly driven by National Australia Bank (NAB), which saw its shares increase by 2.5% despite a decline in cash profit. This performance positively influenced the broader financial sector, which climbed 1.5%. NAB announced a steady interim dividend and an expansion of its share buyback program, providing a slight boost to its early trading figures.
Conversely, Woolworths experienced a 4% drop after its half-year profit fell short of expectations, exacerbated by rising supply chain costs and modest deflation in food prices. Nonetheless, the company reported a 2.8% increase in sales for the March quarter, reaching $16.8 billion, with a notable 17.6% jump in online sales, although these figures did not meet analyst forecasts.
Elsewhere, automotive parts retailer Bapcor’s shares plummeted by 31% following a downgrade in profit guidance, attributing the downturn to consumer hesitancy to spend amid escalating living costs.
Leaders
PXA Pexa Group Ltd 11.28%
CU6 Clarity Pharmaceuticals Ltd 7.31%
QUB QUBE Holdings Ltd 6.56%
BGA Bega Cheese Ltd 5.90%
WAF West African Resources Ltd 5.29%
Laggards
BAP Bapcor Ltd -24.39%
APM APM Human Services Int Ltd -8.30%
HLS Healius Ltd -5.22%
SQ2 Block Inc -5.01%
WOW Woolworths Group Ltd -4.12%