Asia stocks slide on weak China data as copper plunges
Asian stocks fell on Thursday after a decrease in Chinese activity data and copper prices than expected, while investors weighed a trade agreement between South Korea and the United States.
Investors are a dollar close to the highest level of the two months as they weigh the federal reserve decision to make fixed and strong gains of Megacap technology firms.
NASDAQ futures increased by 1.2 percent higher after better earnings than expected from Microsoft and commodity platforms. While the S&P 500 -term transactions progressed by 0.8 percent, the US dollar remained constant after reaching the highest level of two months.
Ig market analyst Tony Sycamore in Sydney, the earnings reports of both companies “pulled the lights out”, respectively, respectively, cloud computing and AI advertising targeting higher revenue.
MSCI’s Asian-Pacific shares index outside Japan decreased by 0.7 percent, but in July it is still on its way for consecutive fourth-month earnings.
Hong Kong and China’s stocks, official PMI indicators decreased after weaker economic activity than expected in July.
Markets are currently waiting for the Japanese Bank’s monthly policy decision later on the day, and the merchants are looking for clues that the Governor Kazuo Ueda can offer about the possibility of another rate this year.
The Federal Reserve’s ratio determination committee voted on Wednesday 9-2.
FED President Jerome Powell’s comments after the decision, the debt costs will begin to decrease in September reduced confidence.
Analysts from Citi will take the next two -month data to convince FED officials to convince the tariff officials to lead to a modest, one -time price increases and that their policy rates should be directed to the neutral, ”he said.
The dollar index was 98,812, only shy from 99,987 for two months on Wednesday. A 3.1 percent earning for the index month, in the first 2025.
Capital Group fixed income investment director Manusha Samaraweeera said, although the Federal Reserve decides to keep the rates constant in the final ratio determination decision, the chances of ratio interruptions in the upcoming meetings remain alive as it balances economic data with persistent inflation potential. ”
The US Gross Domestic Product Growth has returned more than expected in the second quarter, but the details of the report have drawn a picture of an economy that lost steam struggling with Trump’s protectionist trade policy.
Koreli said that Trump will demand a 15 percent tariff from South Korea for imports from South Korea, and that it will invest $ 350 billion ($ 544 billion) in US projects in return and buy $ 100 billion for US energy products (A155 billion dollars).
The announcement is the last of a series of trade policy agreements before August 1 to prevent the implementation of the Tariffs of “Independence Day”. These agreements continue to shadow in global markets.
After Trump said that the US would apply 50 percent tariff to copper pipes and cables, copper futures fell 19.4 percent because the expected sweeping restrictions of the tax were insufficient and ore leaving copper input materials such as ores, concentrates and cathodes.
Trump said that on Wednesday, trade negotiations with India will still continue to announce that the US would apply 25 percent tariff to the goods imported from the country.
Meanwhile, the US will suspend the exemption of “de minimis”, which allows low -valuable commercial posts to be sent to the US without tariffs. The tax reduction is the basis for China’s low-cost e-commerce platforms such as Shein and PDD’s TEMU.
In commodities, investors were concerned about the shortage of supply due to the threat of tariffs on the countries that bought Trump’s war in Ukraine and the threat of tariffs on the countries that purchased Russian oil.
Brent Ham Futures increased by 0.33 percent to $ 73.48 (A114.18 $) for September delivery for the September delivery that will end on Thursday, while the Western Texas intermediate crude oil was $ 70.15 (A109.01).
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