Asia-Pacific markets are expected to continue their downward trend as investors await key economic data from China and the U.S. Federal Reserve’s rate decision. China’s one-year and five-year loan prime rates are of particular interest, as they can impact borrowing costs for businesses and consumers. Additionally, Japan will release its August trade data, while South Korea’s wholesale inflation has shown an increase for the first time since July 2022.
Japan’s Nikkei 225 and Australia’s S&P/ASX 200 are both expected to open lower based on futures contracts. Similarly, Hong Kong’s Hang Seng index is predicted to start the day on a downward trend.
In the oil market, prices have surged, marking the fourth consecutive session of gains. Weak U.S. shale output and extended production cuts by Saudi Arabia and Russia have raised concerns about supply, driving prices up.
In the U.S., the S&P 500 has seen a decline across all 11 sectors, with consumer discretionary, energy, and industrial stocks experiencing the biggest losses. However, utilities and healthcare sectors have managed to keep losses minimal.
On the Dow, Disney’s announcement of increased investment in its parks and cruise businesses has led to a drop in its stock price, weighing down the index. Intel has also seen a significant decline. In contrast, IBM and Amgen have shown slight increases, while Apple has remained relatively stable.
In the Nasdaq, both Amazon and software stocks have performed poorly, contributing to the overall lag in the index.
Sources:
– CNBC article “Asia-Pacific markets set for declines as investors await China rates and US Fed decision” dated September 19, 2023
– CNBC article “Oil prices surge on growing supply concerns” dated September 19, 2023
– CNBC article “All S&P 500 sectors trade down” dated September 19, 2023
– CNBC article “Disney drags on Dow” dated September 19, 2023
– CNBC article “Amazon, software stocks among biggest Nasdaq laggards” dated September 19, 2023
