BofA update shows where active managers are putting money
Investing.com-- Most Asian stocks moved in a flat-to-low range on Wednesday as investors remained uncertain over the full scope of U.S. President Donald Trump’s trade tariffs, while mixed inflation data from China also weighed.
Asian markets took a weak lead-in from Wall Street, which logged a muted overnight session as Trump threatened more trade tariffs, this time on copper and pharmaceutical imports. Trump’s threat came after he began issuing letters to major economies outlining U.S. tariffs on their imports.
S&P 500 Futures were flat in Asian trade.
Regional markets were also caught off guard by the Reserve Bank of Australia not cutting rates as expected on Tuesday, with Australian stocks extending their losses.
China shares muted, HK dips after middling inflation data
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.2% apiece, while Hong Kong’s Hang Seng index sank about 0.9%.
Government data released on Wednesday showed Chinese consumer price index inflation improved marginally in June, beating expectations but still remaining relatively subdued.
While consumer inflation did take some support from government subsidies and e-commerce shopping events in June, Capital Economics analysts expect this boost to fade out in the coming months.
Producer price index inflation shrank more than expected and marked a 33rd consecutive month of contraction. The print was also at its lowest level since July 2023.
Wednesday’s inflation data showed China’s deflationary trend still remained largely in play, despite efforts by Beijing to shore up local spending. Local producers are also grappling with sluggish overseas demand, amid relatively high U.S. tariffs on the country.
China on Tuesday warned that U.S. against reigniting a trade war between the two countries, especially as Trump harshened his tariff rhetoric this week.
Asia stocks rangebound as Trump tariff jitters persist
Broader Asian markets moved in a tight range on Wednesday, as traders sought more clarity on Trump’s tariff plans. The president on Monday released letters outlining steep tariffs against several Asian economies, although he also postponed the effective date of his tariffs to August 1 from July 9.
This spurred some hopes that trade deals with Washington could be reached, although the outlook still remained unclear.
South Korea’s KOSPI rose 0.2% and Japan’s TOPIX rose 0.3% on Wednesday, while the Nikkei 225 traded flat.
Australia’s ASX 200 fell 0.3% as Trump’s copper tariff threat pressured local mining stocks. Australian shares were also rattled by the RBA unexpectedly leaving interest rates unchanged on Tuesday, against broad market expectations for a 25 basis point cut.
Singapore’s Straits Times index rose 0.2%, while Gift Nifty 50 Futures for India’s Nifty 50 index pointed to a flat open. India was not named in Trump’s first batch of tariff letters, spurring some hopes that a Washington-New Delhi trade deal was near.