What's Affecting Markets Today
Asian markets mixed
Asia-Pacific markets were mixed on Thursday following comments from U.S. Federal Reserve Chair Jerome Powell, indicating a potential rate cut in September if inflation trends remain favorable.
Japan’s Nikkei 225 dropped 2.72%, and the Topix fell 3.45%, with real estate stocks and exporters declining due to a stronger yen. The Bank of Japan raised its benchmark interest rate to “around 0.25%,” its highest since 2008, causing the yen to strengthen to 148.61 against the dollar.
Toyota reported a 12.2% revenue increase to 11.84 trillion yen for Q1, with a 16.7% rise in operating income. However, shares dropped 8.29%.
Meanwhile, South Korea’s Kospi gained 0.26%, with exports rising 13.9% year-on-year in July. Hong Kong’s Hang Seng index edged up 0.2%, while mainland China’s CSI 300 saw a marginal decline. China’s manufacturing PMI contracted to 49.8 in July, below expectations of 51.5
ASX Stocks
ASX 200 - 8,127.3 (+0.4%)
Key Highlights:
The Australian sharemarket has reached a record high, surpassing 8100 points, driven by rate optimism and rising oil prices. The S&P/ASX 200 increased by 34 points, or 0.4%, to 8126.7, building on gains from the previous day following lower core inflation figures that eased rate concerns.
Tech and real estate stocks surged, with Commonwealth Bank briefly surpassing $138 per share for the first time before retreating. Oil prices also climbed, with Brent crude rising 2.8% to $US80.72 per barrel and U.S. oil up 5% to $US78.49, following geopolitical tensions in Tehran.
Energy stocks advanced 1.3%, led by a 1% gain in Woodside. In contrast, Monadelphous Group shares dropped 5% to $12.33 after Albemarle terminated contracts at the Kemerton Project in Western Australia, impacting expected revenue and reducing construction work-in-hand by approximately $200 million.
Leaders
ZIP ZIP Co Ltd (+6.28%)
TPW Temple & Webster Group Ltd (+5.43%)
RDX REDOX Ltd (+4.49%)
VSL Vulcan Steel Ltd (+4.48%)
SFR Sandfire Resources Ltd (+4.37%)
Laggards
DRO Droneshield Ltd (-14.21%)
CCP Credit Corp Group Ltd (-4.99%)
MND Monadelphous Group Ltd (-4.97%)
RED RED 5 Ltd (-4.49%)
BCI BCI Minerals Ltd (-3.92%)
