South Korea July consumer inflation rise 2.1% from a year earlier, as expected
South Korea’s consumer prices rose 2.1% in July from a year earlier, slightly slower than the rise of 2.2% in June, government data showed on Tuesday.
On a monthly basis, the consumer price index rose 0.2%, the fastest in four months, after no change in the previous month.
The numbers were roughly in line with median forecasts of 2.13% and 0.22% tipped in a Reuters poll of economists.
— Reuters
Asia-Pacific markets open higher
Asia markets started the trading day in the green.
Japan’s benchmark Nikkei 225 was up 0.54%, while the Topix inched higher 0.45%.
South Korea’s Kospi gained 1.77%, and the small-cap Kosdaq rose 1.83%.
Australia’s S&P/ASX 200 gained 0.84%.
— Lee Ying Shan
U.S. economic slowdown narrows risk of investing in emerging markets: Allspring Global Investments
The U.S.’ weak July jobs data report points to the “narrowing” of risk between U.S. and emerging markets assets, Derrick Irwin, senior portfolio manager at Allspring Global Investments told CNBC’s “Squawk Box Asia” Monday.
This comes amid a slowdown in the U.S. economy, “not only versus emerging markets, but in its own right,” Irwin said. “We’re likely to see rate cuts out of the Fed, which is not supportive of the dollar. And I think most importantly, we have an administration that has indicated that they would prefer a weaker dollar.”
He also noted that the actual economic impact of tariffs on emerging markets is “more limited than we think”, as a substantial amount of the U.S.’ imports are still exempted from new tariff rules.
Other drivers are making emerging markets an “interesting place to invest,” he said, citing China as an example. He expects to see a “continued, if rather slow move towards stimulating consumption,” which could mean “great opportunities,” particularly in the artificial intelligence sector.
India also shows promise despite the recent weakness in their stock market. “I think there’s opportunities to begin to pick up really great assets with a great long term story after that market softened a bit,” he noted.
Year-to-date, India’s benchmark Nifty 50 and the BSE Sensex index were up 4.58%, and 3.69% respectively.
A weaker U.S. dollar and falling global inflation have also given emerging markets an “incredible opportunity to begin cutting rates without damaging their currencies as much,” which can be “very stimulative” for their stock markets, Irwin said.
— Nicole Teo
Opening calls
Happy Tuesday from Singapore. Asia markets are poised for a mixed open.
Australia’s S&P/ASX 200 was set to start the day higher with futures tied to the benchmark at 8,701, compared with its last close of 8,663.70.
Japan’s benchmark Nikkei 225 was set to open higher, with the futures contract in Osaka last traded at 40,610 against the index’s last close of 40,290.70.
However, futures for Hong Kong’s Hang Seng Index stood at 24,708 pointing to a weaker open compared with the HSI’s last close of 24,733.45.
— Lee Ying Shan
Stocks close out first session of the week in positive territory following Friday’s sell-off
All the three major averages soared into the green on Monday, with the Dow Jones Industrial Average recouping its losses from Friday’s session.
The blue-chip index climbed 585.06 points, or 1.34%, to finish the day at 44,173.64.
Additionally, the broad market S&P 500 and the tech-heavy Nasdaq Composite rocketed higher by 1.47% and 1.95%, ending at 6,329.94 and 21,053.58, respectively.
— Sean Conlon
Read More: Trump tariffs, India, Nikkei 225