Gift Nifty, rally in Asian markets and US stocks to Japan’s policy tweak - key triggers for Indian stock market today
- MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%, having gained 4.9% so far in July to reach a five-month high.
Asian markets traded higher on Monday ahead of major economic releases, central bank meetings and inflation data from across the region this week. US markets ending higher on Friday also improved sentiment.
China is set to release its July purchasing managers index on Monday, while the US ISM surveys on manufacturing and services, the July payrolls report and European inflation due this week will also be eyed.
Investors are still gauging the implications of the Bank of Japan’s decision to lift the lid on bond yields, in a step away from its ultra-easy policies.
Meanwhile, Japanese retail sales rose 5.9% in June from a year earlier, compared with a forecast for a 5.6% increase. Separate data showed factory output rose 2.0% in June from the previous month.
In the US, data showed that in the 12 months through June, the PCE price index advanced 3.0%, its smallest annual gain since March 2021.
Easing wage costs and core inflation fuelled hopes the Federal Reserve was at the end of its policy tightening cycle.
Asian Markets
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%, having gained 4.9% so far in July to reach a five-month high.
In Japan, the Nikkei 225 rallied 1.11% and the Topix jumped 1.27%. South Korea’s Kospi rose 0.65%, while the Kosdaq gained 1.21%.
Hong Kong’s Hang Seng index futures were trading over 240 points higher at 20,160, pointing to a stronger open.
In Australia, the S&P/ASX 200 rose 0.22% ahead of the Reserve Bank of Australia’s rate decision on Tuesday.
Meanwhile, Gift Nifty was trading at 19,788.50 as compared to Nifty’s Friday’s close of 19,646.05, indicating a positive start for the Indian benchmark index.
Wall Street
US Stocks ended higher on Friday after data showed annual inflation slowed down in June, raising hopes that the Federal Reserve is nearing the end of its interest rate hiking cycle. Earnings from technology companies also supported the rally.
The Dow Jones Industrial Average rose 76.67 points, or 0.22%, to 35,359.39, while the S&P 500 gained 27.36 points, or 0.60%, to 4,564.77. The Nasdaq Composite ended 205.39 points, or 1.46%, higher at 14,255.49.
Among stocks, Intel shares jumped 5.35% after its results and bullish sales forecast. This fuelled gains in peers, with Nvidia and Marvell Technology rising 1.52% and 1.55%, respectively.
Meta Platforms Inc. rallied 4.42% and Tesla Inc. climbed 4.2%.
Procter & Gamble rose 2.75% after it beat analysts’ estimates for quarterly sales. Ford Motor fell 4.25%, while Juniper Networks tanked 6.32%.
Enphase Energy plunged 8.43%, Exxon Mobil fell 1.77%, while Chevron declined 1.08%. Reata Pharmaceuticals soared 52.35% after Biogen agreed to buy the rare disease drugmaker for nearly $6.5 billion.
Europe
European shares ended higher Friday.
Britain’s FTSE 100 gained 0.02% at 7,694.27, while Germany’s Frankfurt DAX rose 0.39% to 16,469.75. France’s CAC 40 added 0.15% to 7,476.47.
Energy
Crude oil prices fell, but hovered near three-month highs.
Brent crude futures fell 0.17% to $84.76 a barrel, while US West Texas Intermediate crude declined 0.24% to $80.39 a barrel.
Currencies
The dollar traded lower against peers including the yen, the euro and the Australian currency. The dollar was off slightly at 140.78 yen.
(With inputs from Reuters)
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