Promising economic data was obtained from China in the morning as both industry and services sectors were recovering from the Purchasing Managers ’Indices after several weak months. Among other things, this is due to the partial relaxation of movement restrictions.
The Industrial Purchasing Managers ‘Index fell slightly short of economists’ consensus expectations, but rebounded to over 50. A figure above 50 in the Purchasing Managers ’Index indicates growth in the sector, a figure below 50 is in contraction.
Chinese stock markets were on the rise, the rest of Asia mostly declining on Thursday. The CSI 300 index of Chinese companies rose 1.6 percent. The Shenzhen Stock Exchange rose 1.8 percent and the Shanghai Stock Exchange 1.3 percent. The Hong Kong Stock Exchange’s Hang Seng Index was up just under 0.1 percent.
In Japan, a clear decline in exchange rates was seen. The Nikkei index had slipped 1.4 percent, the broader TOPIX index was on a milder 1.1 percent slope. The sharpest declines in TOPIX’s industries were in the energy and IT sectors.
In Taiwan, Korea and Australia, stock markets were also in clear decline.
Governor of the Federal Reserve of the United States Jerome Powell was speaking yesterday at an ECB event in Sintra, Portugal. Powell and the leaders of the ECB and the Bank of England spoke about inflation in a grim tone. Central bankers are expected to decide on clear monetary tightening at future interest rate meetings, as inflation is seen as a higher risk than suffering from economic growth.
The stock market is becoming the weakest quarter since January – March 2020, when the interest rate pandemic struck.
“I wouldn’t rush to buy anything blindly right now. I believe that there will be more pain in the coming weeks and months as inflation stabilizes, ” Pacific Investment Managementin portfolio manager Erin Browne comments on the market to Bloomberg.
In the foreign exchange market, the dollar had weakened 0.1 percent against the euro, the pound and the yen.
The dollar typically strengthens in an uncertain situation. On Thursday, improved industrial data in China tightened riskier currencies.
The euro received $ 1.0456 and the dollar 136.43 yen.