01/08/2023
Today’s Announcements & News
Asia
Asia-Pacific markets rose on Monday despite China’s factory activity remaining in contraction territory for the fourth consecutive month. The official manufacturing purchasing managers index (PMI) for July came in at 49.3, slightly higher than June’s figure of 49.0, according to the national bureau of statistics. However, the PMI for non-manufacturing activity showed a slower rate of expansion at 51.5, compared to 53.2 in June.
Hong Kong’s Hang Seng index rose 0.83% in its final hour of trade, while the Hang Seng Tech index saw a larger climb of 1.87%. The Hang Seng Index (HSI) is on track to breach the 20,000 mark for the first time in over a month.
Mainland Chinese markets also saw gains, though they pared earlier advances. The Shanghai Composite was up 0.46% to close at 3,291.04, and the Shenzhen Component rose 0.75% to end at 11,183.91.
On Monday, Japan’s Nikkei 225 index gained 1.26% to close at 33,172, while the Topix saw a larger rise of 1.39% to set a new 33-year record, ending the day at 2,322.56. However, the country’s industrial output for June came in lower than expected, growing by 2% month-on-month compared to the 2.4% expected by economists.
South Korea’s Kospi index advanced 0.93% to close at 2,632.58, recording a third straight day of gains. The Kosdaq also climbed significantly, rising by 2.25% to close at 935.97, reaching close to its 16-month high.
In Australia, the S&P/ASX 200 index climbed marginally and closed at 7,410.4. Investors are preparing for the Reserve Bank of Australia’s rate decision on Tuesday. Economists polled by Reuters are expecting a 25 basis points hike in the benchmark policy rate to 4.35%.
US
On Monday, stocks in the US rose modestly as Wall Street began a busy earnings week and concluded a winning month. The Dow Jones Industrial Average added 100.24 points, or 0.28%, settling at 33,559.53. The S&P 500 edged up 0.15% to close at 4,588.96, while the Nasdaq Composite rose 0.21% to end at 14,346.02.
The positive momentum extended throughout July, with the S&P 500 jumping 3.1% to achieve its fifth consecutive positive month, a streak not seen since August 2021. The Nasdaq Composite also gained about 4.1%, marking its fifth straight winning month, which hasn’t happened since April 2021.
Commodity
On Monday, oil prices surged to a fresh three-month high, recording their steepest monthly gains since January 2022. The rally was driven by indications of tightening global supply and increasing demand for the rest of the year.
October Brent crude futures, the more actively traded contract, rose by $1.02, or 1.2%, settling at $85.43 per barrel. The September Brent contract, which expired on Monday, also saw a 0.7% increase, closing at $85.56 per barrel.
U.S. West Texas Intermediate (WTI) crude futures experienced a rally of $1.22, or 1.5%, reaching $81.80 per barrel.
Both Brent and WTI crude reached their highest levels since late April for a third consecutive session on Monday, following five consecutive weekly gains on Friday.
Additionally, gold prices rose on Monday, heading for their best month in four. This increase was supported by a weaker dollar and investor sentiment that major global central banks are nearing a peak with interest rate hikes. Spot gold gained 0.6% to reach $1,971.27 per ounce, with bullion up 2.5% for the month so far.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
