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Japan Stocks Surge Over 2%, Leading Mixed Asia-Pacific Markets Amid Global Economic Uncertainty

Japan’s Nikkei 225 surges 2.5%, leading gains in Asia-Pacific markets on August 13, 2024. Credit: EconoTimes

Japan's Nikkei 225 surged 2.5% on August 13, marking its first climb above 36,000 since August 2. Technology and financial sectors drove gains, with Rakuten Group up 8.7%. Meanwhile, U.S. markets were mixed as investors anticipated critical inflation data.

Japan’s Nikkei 225 Surges 2.5%, Boosted by Technology and Financial Sectors, as Asia-Pacific Markets Show Mixed Results

On August 13, markets resumed trading after a holiday, resulting in a more than 2% increase in Japan's major indexes, per CNBC.

For the first time since August 2, the benchmark Nikkei 225 surged 2.50% and surpassed 36,000. The broader Topix index experienced a 1.9% increase.

The country's technology and financial sectors were the primary drivers of the momentum, as evidenced by the 8.7% and 7.6% increases in Rakuten Group and Trend Micro, respectively.

Reuters, citing government sources, reported that the nation's parliament intends to convene a special session next week to deliberate on the Bank of Japan's decision to increase interest rates last month.

Japan's producer price index increased 3% in July compared to the previous year, a higher pace than the 2.9% increase in June.

The small-cap Kosdaq experienced a 1.58% loss, while South Korea's Kospi experienced a 0.17% decline.

The Australian S&P/ASX 200 index increased by 0.10%. In contrast to expectations of a 0.9% increase, wages in Australia increased at a slower rate of 0.8% in the quarter ending in June, the slowest pace since the same quarter a year prior. On an annual basis, wages increased by 4.1%.

The Hang Seng index in Hong Kong increased by 0.10%, while the CSI 300 in mainland China declined by 0.21%.

Singapore's Q2 GDP Rises 2.9%, Strengthening Key Sectors as U.S. Markets Brace for Inflation Data

Singapore reported a 2.9% increase in its economy from the previous year's second quarter in Southeast Asia, consistent with the advanced gross domestic product estimate released in July. The Ministry of Trade and Industry identified the wholesale trade, finance, and insurance sectors and the information and communication sectors as areas of strength. The city-state also stated that it anticipates a 2% to 3% increase in GDP in 2024, as opposed to its previous projection of 1% to 3%.

As investors anticipated critical inflation data, U.S. markets experienced a turbulent overnight.

The Nasdaq Composite, dominated by technology, closed at 16,780.61 after a 0.21% increase, with shares of Nvidia surging 4%. The S&P 500 remained unchanged at 5,344.39. Conversely, the Dow Jones Industrial Average experienced a 140-point decline, or 0.36%, to conclude at 39,357.01.

On August 14, traders eagerly anticipate the July consumer price index, a critical indicator of the health of the U.S. economy. Investors will scrutinize the data for any indications that the Federal Reserve may commence reducing rates in September.

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