What's Affecting Markets Today
Asia markets mixed
Asia-Pacific markets were mixed on Wednesday as Australia’s inflation rate climbed for the third consecutive month, while semiconductor stocks surged following Nvidia’s overnight rally. Australia’s headline inflation rate for May reached 4%, up from April’s 3.6%, with core inflation also at 4%, surpassing the 3.8% forecast by economists. The unexpected inflation rise could prompt the Reserve Bank of Australia (RBA) to increase interest rates, as indicated by Governor Michelle Bullock’s recent comments.
Singapore’s May factory output is anticipated to show 2% year-on-year growth, rebounding from April’s 1.6% decline, according to a Reuters poll.
Australia’s S&P/ASX 200 fell 1.03%, led by declines in non-energy minerals and retail trade sectors. Japan’s Nikkei 225 gained 1.26% and the Topix rose 0.64%. South Korea’s Kospi increased by 0.25%, with the Kosdaq nearly flat. Semiconductor stocks, including Advantest, Taiwan Semiconductor, SK Hynix, and MediaTek, saw significant gains. In contrast, Samsung Electronics dipped over 0.2%. Meanwhile, Hong Kong’s Hang Seng and mainland China’s CSI 300 both experienced marginal declines.
ASX Stocks
ASX 200 - 7,783.0 (-0.70%)
Key Highlights:
Australia’s sharemarket experienced significant declines, dropping over 1% by midday as May’s consumer price data revealed an inflation spike. The S&P/ASX 200 fell 85.1 points to 7753.7 by 12:34pm AEST after May’s CPI surged to 4%, up from April’s 3.6% and exceeding the 3.8% consensus. Banking, real estate, and consumer discretionary sectors were hit hard as bond traders increased bets on a potential rate hike by the Reserve Bank, with money markets now pricing a 59% chance of the cash rate rising to 4.6% by September.
In focus, former Crown Resorts CEO Steve McCann has been appointed group CEO of Star Entertainment, lifting shares 2.6% to 47.7¢. Healius dropped 4.2% to $1.41 following a disappointing earnings update. Collins Foods fell 6.3% to $9.37 despite recent gains. Bannerman Energy shares were halted for a capital raising. Harvey Norman declined 7.6% after Barrenjoey analysts cut their valuation to $4.00 from $4.50 due to weaker macro conditions.
Leaders
WA1 WA1 Resources Ltd 6.68%
PNV Polynovo Ltd 6.61%
MEZ Meridian Energy Ltd 6.25%
DRO Droneshield Ltd 5.74%
CU6 Clarity Pharmaceuticals Ltd 4.73%
Laggards
SNZ Summerset Group Holdings Ltd -9.07%
CKF Collins Foods Ltd -8.40%
HVN Harvey Norman Holdings Ltd -8.08%
OML Ooh!Media Ltd -5.21%
RDX REDOX Ltd -5.05%
