What's Affecting Markets Today
Asian Markets Stronger
Asia-Pacific markets rose on Friday as investors analyzed key economic data from Japan and anticipated U.S. inflation figures. The Japanese yen hit a 38-year low against the dollar, reaching 161.27. Japan replaced Masato Kanda with Atsushi Mimura as its top currency diplomat. Tokyo’s headline inflation accelerated to 2.3% in June, up from 2.2% in May, with core inflation rising to 2.1% from 1.9%. This data, a leading indicator for national trends, suggests potential monetary policy tightening amidst yen depreciation. Japan’s industrial production grew 2.8% month-on-month in May, surpassing the expected 2%, and increased 0.3% year-on-year. South Korea’s retail sales fell 0.2% year-on-year in May, a smaller decline than April’s revised 0.8%. Japan’s Nikkei 225 rose 1.04%, and the Topix gained 0.84%. South Korea’s Kospi edged up 0.13%, while the Kosdaq rose 0.1%. Hong Kong’s Hang Seng index saw marginal gains, and China’s CSI 300 rebounded 0.11% from a four-month low.
ASX Stocks
ASX 200 - 7,768.4 (+0.1%)
Key Highlights:
Australian shares rose 0.6% at the open, driven by gains in banking, insurance, and property stocks, poised to end a two-day losing streak following a hotter-than-expected May CPI print. Treasurer Jim Chalmers approved ANZ’s proposal to acquire Suncorp Bank, subject to conditions. Suncorp will retain its Queensland-based insurance operations and plans to return most of the bank sale proceeds to shareholders by Q1 2025, pending further regulatory approvals.
Nathan Zaia, banking and insurance analyst at Morningstar, noted the deal could be mildly accretive but may present challenges, potentially adding 5% to ANZ Group’s profits. Suncorp shares rose 3.6% to $17.42, while ANZ gained 0.8%. IAG shares surged 8% to $7.25 after announcing a major reinsurance deal and confirming 2024 earnings guidance.
Conversely, Guzman y Gomez shares dropped 5.6% to $28.56 as traders struggled to value the high-growth retailer. Lithium miners, including Mineral Resources and Pilbara Minerals, extended losses amid falling prices.
Leaders
SPR Spartan Resources Ltd 10.67%
WA1 WA1 Resources Ltd 7.66%
CU6 Clarity Pharmaceuticals Ltd 7.20%
IAG Insurance Australia Group Ltd 6.83%
DEG De Grey Mining Ltd 5.28%
Laggards
GYG Guzman Y GOMEZ Ltd -7.89%
PLS Pilbara Minerals Ltd -5.06%
DUI Diversified United Investment Ltd -3.94%
LTM Arcadium Lithium Plc -3.76%
CHC Charter Hall Group -3.76%
