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Asia-Pacific markets showed mixed performance on Tuesday, largely influenced by China’s lower-than-expected trade data for July. China’s exports registered a year-on-year decline of 14.5%, while imports also dropped by 12.4% compared to the previous year. This was below economists’ expectations of a 12.5% decrease in exports and a 5% drop in imports.
Hong Kong’s Hang Seng index experienced a 1.74% decline in its final trading hour, and mainland Chinese markets also trended downward. The Shanghai Composite dipped by 0.25% to close at 3,260.62, and the Shenzhen Component decreased by 0.42%, ending at 11,098.45.
Japan’s Nikkei 225 managed to rise by 0.38%, extending its winning streak for three consecutive days and closing at 32,377.29. The Topix also saw a 0.34% increase, ending at 2,291.73. Despite these gains, Japan’s household spending remained in negative territory for the fourth consecutive month, with a 4.2% year-on-year decline in June, following a 4% decrease in May, as reported by official data.
In Australia, the S&P/ASX 200 index edged up marginally, closing at 7,311.1. Meanwhile, South Korea’s Kospi experienced a slight dip of 0.26%, marking five consecutive days of losses, and the Kosdaq index slipped by 0.65% to close at 892.34.
On Tuesday, a renewed selloff in August was triggered by a credit rating downgrade of the banking sector by Moody’s, leading to a retreat in stocks.
The Dow Jones Industrial Average declined by 158.64 points, equivalent to 0.45%, ultimately closing at 35,314.49. At its lowest point during the session, the index had fallen by approximately 465 points.
The S&P 500 also experienced a dip of 0.42%, closing at 4,499.38. This pushed the overall losses for the broad index to nearly 2% for the month. Similarly, the Nasdaq Composite pulled back by 0.79%, concluding the day at 13,884.32, resulting in a cumulative loss of 3.2% for the month of August.
Oil prices saw a slight increase on Tuesday, driven by an improved economic outlook projected by a U.S. government agency, although negative data concerning China’s crude imports and exports had a dampening effect.
Brent crude futures rose by 83 cents, settling at $86.17 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude gained 98 cents, reaching $82.92. These prices shifted upward after earlier experiencing a decline of $2.
The shift in prices occurred following the release of a monthly report by the U.S. Energy Information Administration (EIA), which anticipated a growth in GDP of 1.9% for 2023, up from a previous projection of 1.5%. Additionally, the EIA forecasted an average Brent crude oil price of $86 for the second half of 2023, representing a $7 increase from the earlier estimate.
Gold prices declined to a nearly one-month low on Tuesday as investors turned to the U.S. dollar for safety following disappointing Chinese trade data. Market participants also exhibited caution in anticipation of upcoming U.S. inflation figures.
The price of spot gold decreased by 0.6%, reaching $1,925.79 per ounce, which marked its lowest level since July 10. Meanwhile, U.S. gold futures settled 0.5% lower at $1,959.9.
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.