Hang Seng Index, Nikkei Index, ASX 200: The Bank of Japan and EU Tariffs on China

US Producer Prices Fuel Bets on a September Fed Rate Cut

Overnight US economic indicators from Thursday (June 13) raised investor bets on a September Fed rate cut. Producer prices fell by 0.2% in May after increasing by 0.5% in April. Additionally, core producer prices stalled in May after advancing by 0.5% in April.

Furthermore, US initial jobless claims increased from 229k to 242k in the week ending June 8.

10-year US Treasury yields fell by 70 basis points to 4.246% on Thursday (June 13), reacting to the US data. However, it was a mixed session for the US equity markets.

On Thursday, the Nasdaq Composite Index and the S&P 500 advanced by 0.34% and 0.23%, respectively. However, the Dow bucked the trend, falling by 0.17%.

The US Futures had a mixed start to the Friday (June 14) Asian session, with the Nasdaq mini gaining 25 points while the Dow mini declined by 21.

Aussie Stats, the Bank of Japan, and EU Tariffs on China

While softer US inflation figures could fuel buyer demand for Asian equity market-listed stocks, concerns about China and the Asian economic calendar also need consideration.

The Bank of Japan will announce its monetary policy decision, which could impact the USD/JPY and the Nikkei Index.

Furthermore, China could retaliate against the European tariffs on electric vehicle from China. The threat of retaliation and a lengthy trade war could impact market risk sentiment.

Hang Seng Index Joins Mainland China Markets in the Red

The mainland China indexes started the Friday morning session in negative territory. On Friday, the Shenzhen Composite Index and CSI 300 saw losses of 0.54% and 0.57%, respectively.

The Hang Seng Index tracked the broader market into negative territory, falling by 0.49%.

Tech stocks had a mixed start to the day. The Hang Seng Tech Index (HSTECH) was down 0.75% in the morning session.

Alibaba (9988) slid by 2.48%, with Baidu (9888) falling by 0.65%. Tencent Holdings (0700) gained 0.13%.

However, real estate stocks limited the downside. The Hang Seng Mainland Properties Index (HSMPI) advanced by 1.00%.

Nikkei Faces the Bank of Japan Monetary Policy Decision

The Nikkei Index fell by 0.03% in the Friday morning session. A weaker USD/JPY failed to drive buyer demand for Nikkei Index-listed export stocks. Investors were cautious before the Bank of Japan monetary policy decision.

Softbank Group Corp (9984) bucked the trend, rallying 3.56%.

However, KDDI Corp. (9433) and Sony Group Corporation (6758) slid by 2.00% and 1.51%, respectively.

Fast Retailing Co. Ltd. (9983) fell by 1.23%, with Tokyo Electron Ltd. (8035) declining by 0.06%.

ASX 200 Succumbs to Market Risk Aversion

The ASX 200 declined by 0.29% on Friday morning.

Gold spot (XAU/USD) and WTI crude oil trended lower on Thursday, impacting gold and oil-related stocks.

Northern Star Resources Ltd. (NST) and Evolution Mining Ltd (EVN) slid by 2.95% and 2.43%, respectively.

Woodside Energy Group Ltd (WDS) and Santos Ltd (STO) fell by 0.76% and 0.27%, respectively.

Mining and tech stocks contributed to the morning losses.

Fortescue Metals Group Ltd. (FMG) fell by 1.02%. BHP Group Ltd (BHP) and Rio Tinto Group Ltd. (RIO) saw losses of 0.19% and 0.59%, respectively.

The S&P/ASX All Technology Index fell by 0.74%.

Bank stocks joined the broader market in the red. Commonwealth Bank of Australia (CBA) and Westpac Banking Corp. (WBC) fell by 0.36% and 0.22%, respectively. ANZ Group Holdings Ltd. (ANZ) declined by 0.14%, with National Australia Bank Ltd. (NAB) down by 0.10%.

For upcoming economic events, refer to our economic calendar.