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Asia-Pacific Markets React to Economic Developments and Inflation Trends
On Friday, Asian-Pacific markets saw declines due to Japan releasing revised second-quarter GDP figures and Hong Kong suspending trading for the entire day due to a storm warning. Japan's Nikkei 225 extended its losses from Thursday, dropping by 1.38%, while the Topix fell by 1.11%.
Japan's second-quarter economic growth was 4.8% on a quarter-on-quarter annualized basis, which was lower than the preliminary estimate of 6% and fell short of the 5.5% expected in a Reuters poll. Finance Minister Shunichi Suzuki expressed concerns about FX movements and indicated a readiness to consider various options to address excessive moves.
The offshore yuan hit its lowest level against the U.S. dollar since its inception in 2010, reaching 7.3599 yuan per dollar after crossing the 7.35 level earlier in the day. Meanwhile, solid jobless claims figures supported the case for the Fed to maintain elevated interest rates, with U.S. unemployment benefit applications reaching their lowest point since February.
John Williams, President of the Federal Reserve Bank of New York, stated that U.S. monetary policy is currently in a favorable position, but officials will closely analyze data to determine their approach to interest rates. In a separate statement, Chicago Fed President Austan Goolsbee suggested that the debate would soon shift from how high rates should go.
Additionally, German inflation in August eased to 6.1%, as reported by the federal statistics office, confirming preliminary data. This figure is harmonized to enable comparisons within the Eurozone, with food and energy prices driving the overall inflation rate higher.
On Friday, Asian-Pacific markets saw declines due to Japan releasing revised second-quarter GDP figures and Hong Kong suspending trading for the entire day due to a storm warning. Japan's Nikkei 225 extended its losses from Thursday, dropping by 1.38%, while the Topix fell by 1.11%.
Japan's second-quarter economic growth was 4.8% on a quarter-on-quarter annualized basis, which was lower than the preliminary estimate of 6% and fell short of the 5.5% expected in a Reuters poll. Finance Minister Shunichi Suzuki expressed concerns about FX movements and indicated a readiness to consider various options to address excessive moves.
The offshore yuan hit its lowest level against the U.S. dollar since its inception in 2010, reaching 7.3599 yuan per dollar after crossing the 7.35 level earlier in the day. Meanwhile, solid jobless claims figures supported the case for the Fed to maintain elevated interest rates, with U.S. unemployment benefit applications reaching their lowest point since February.
John Williams, President of the Federal Reserve Bank of New York, stated that U.S. monetary policy is currently in a favorable position, but officials will closely analyze data to determine their approach to interest rates. In a separate statement, Chicago Fed President Austan Goolsbee suggested that the debate would soon shift from how high rates should go.
Additionally, German inflation in August eased to 6.1%, as reported by the federal statistics office, confirming preliminary data. This figure is harmonized to enable comparisons within the Eurozone, with food and energy prices driving the overall inflation rate higher.