On Wednesday, Asian stocks mostly declined as investors analyzed Japanese and Australian business data. In the U.S., stock prices remained stable as companies began reporting their earnings for the quarter.
Although U.S. futures were down, oil prices saw an increase.
In Japan, the Nikkei 225 fell by 0.2% to 39,508.84 as the Japanese yen strengthened ahead of a Bank of Japan policy decision. The yen’s recent appreciation was attributed to potential rate hikes by the BOJ and rate cuts by the Federal Reserve.
Meanwhile, a business survey showed that Japan’s factory activity contracted in July, but the services sector saw growth, supporting overall private sector activity.
In Hong Kong, the Hang Seng dropped by 0.6%, while the Hang Seng Tech Index declined by 0.9%. The Shanghai Composite remained stable.
Australia’s S&P/ASX 200 edged slightly higher, despite weaker growth in the services sector. South Korea’s Kospi fell by 0.3% mainly due to Samsung Electronics’ stock decline.
In the U.S., the S&P 500, Dow Jones Industrial Average, and Nasdaq composite experienced slight decreases, while the Russell 2000 continued its upward trend.
Several companies reported their quarterly results, with expectations of strong profit growth for S&P 500 companies. Notably, UPS reported weaker profits, while Nvidia’s stock decline impacted the S&P 500.
The housing industry also faced challenges, with a report showing a decline in home sales in June. However, with expectations of the Federal Reserve lowering interest rates, some relief is anticipated for the economy and financial markets.
In the energy market, U.S. benchmark crude oil and Brent crude prices saw slight increases.
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