Asian Markets
Asian equities opened lower on Wednesday, mirroring overnight weakness on Wall Street as investors assessed Japan’s latest trade data. Japan’s Nikkei 225 dropped 1.32% and the Topix slipped 0.31%. South Korea’s Kospi fell 1.26%, while the Kosdaq lost 1.77%. Futures for Hong Kong’s Hang Seng Index also pointed to a weaker start.
Gift Nifty
Gift Nifty traded around the 24,963 mark, nearly 70 points below the previous close of Nifty futures, signaling a subdued opening for Indian benchmark indices.
Wall Street
US markets ended lower on Tuesday, dragged down by technology stocks. The Dow Jones Industrial Average was nearly flat, adding just 10.45 points to close at 44,922.27. The S&P 500 slipped 0.59% to 6,411.37, while the tech-heavy Nasdaq Composite fell 1.46% to 21,314.95.
Shares of Nvidia dropped 3.5%, Microsoft fell 1.42%, Amazon slipped 1.50%, and Tesla lost 1.75%. On the other hand, Intel surged nearly 7% after a major investment, while Home Depot and Palo Alto Networks gained over 3% each.
Intel Boost from SoftBank
Intel shares rallied 6.97% to $25.31 after Japan’s SoftBank Group announced a $2 billion investment in the chipmaker. SoftBank will acquire shares at $23 apiece, representing just under 2% equity, making it the sixth-largest investor in Intel.
China Loan Prime Rate
China kept its benchmark lending rates unchanged for the third consecutive month. The one-year loan prime rate (LPR) remained at 3.0% and the five-year LPR at 3.5%.
India–China Relations
India and China have agreed to resume direct flights and boost bilateral trade and investment. Both sides also committed to reopening border trade at three designated points and facilitating business and tourist visas.
Japan Trade Data
Japan’s exports fell 2.6% year-on-year in July, marking the third consecutive monthly decline and exceeding forecasts of a 2.1% drop. Imports slipped 7.5%, less than expected. The trade balance showed a deficit of 117.5 billion yen ($795 million), compared to forecasts of a surplus.
Dollar Movement
The US dollar climbed to its highest level in over a week. The dollar index rose to 98.39. The greenback traded at 147.78 yen, while the euro slipped to $1.1633 and the British pound weakened to $1.3476.
Gold Prices
Gold prices declined to their lowest level in nearly three weeks as a stronger dollar weighed on the metal. Spot gold fell 0.1% to $3,312.79 per ounce, while US gold futures slipped to $3,355.20.
Crude Oil
Oil prices edged higher after reports indicated a decline in US stockpiles. Brent crude rose 0.49% to $66.11 a barrel, while WTI crude gained 0.59% to $62.72.
