Asia Pacific stock markets are up on a positive start to the week, reinforced by China's latest inflation data. Gold sells off on new tariff news, while the US dollar remains soft ahead of key US CPI data.
Nikkei 225 futures near record high, US dollar remained soft, Gold edged lower amid U.S. bullion tariffs
Most Asia-Pacific stock markets opened the new week on a positive note, mirroring last Friday’s bullish momentum in the US stock market, driven by gains in mega-cap technology stocks. The S&P 500 and Nasdaq 1oo led with gains of 0.8% and 1% as both looked to scale fresh record highs.
China’s latest inflation trend was released last Saturday, which showed that the risk of a deflationary spiral in the Chinese economy has subsided. The headline CPI rate has contracted less than expected at 0% y/y in July, above the forecast of -0.1%. Meanwhile, core CPI, excluding food and energy items, increased by 0.8% y/y in July from 0.7% in June, marking the highest reading in 17 months
In today’s Asia session, Japan’s Nikkei 225 futures inched higher by 0.3% to hit 41,420, just a whisker below its cash index's current all-time high of 42,427 printed in July 2024. The Japanese stock market is closed for a public holiday today. Hong Kong’s Hang Seng Index traded flat at this time of writing, China’s CSI 300 gained by 0.5% while Australia’s ASX 200 snapped its prior two days of losses and advanced by 0.4% to another fresh all-time high ahead of the RBA’s monetary policy decision tomorrow.
Also read Chart of the week: Japan Nikkei 225 potential of bullish breakout.
Gold (XAU/USD) sold off by -0.9% today as traders await clarification on last Friday’s US White House administration ruling that stated one-kilogram and 100-ounce gold bars were subject to levies after the yellow metal was included in a list of exemptions from tariffs announced in early April.
The US dollar continued to trade on a softer tone as markets await key US CPI inflation data out on Tuesday, 12 August. The top three major currencies against the greenback in today’s Asia session were EUR (0.2%), GBP (0.1%), and CHF (0.1%).
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