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Asia Stocks Edged Up As Financiers Await For Powell’s Testimony

Lately, the stocks in Asia edged up mostly on trade since financiers await comments from Jerome Powell—the U.S. Fed (Federal Reserve) Chairman—for possible evidence on the central bank’s coming move on interest rates. Chinese stocks ended the first trading session mostly unchanged, with the Shenzhen Component, Shanghai Composite, and Shenzhen Composite all closing to flat. In the meantime, the Hang Seng index in Hong Kong surge by 0.32%. MSCI’s wider index of Asia-Pacific shares exterior Japan also increased by 0.4%. Kospi in South Korea increased by 0.57% as shares of chip manufacturer SK Hynix surged over 4.5%. In Australia, the S&P/ASX 200 earned by 0.45% since most of the sectors traded higher.

However, in Japan, the Nikkei 225 shed fractionally and the Topix collapsed by 0.36%. The CPI (consumer price index) in China increased by 2.7% yearly in June, which was in line with anticipations from a Reuters survey. One strategist asserted consumer prices in China might decrease in the near future. Daniel So—Strategist at CMB International Securities—said to CNBC, “The pork price tension will wane to some extent in the second half, I feel, and other food prices might follow a similar trend.” A dropdown in pork supply induced by a widespread of African swine fever has been carrying food prices higher in China. In June food prices amplified by 8.3% yearly, those were higher than the past month’s 7.7%.

On a similar note, recently, Fed chief deals with a tough task in Congressional testimony. When Fed’s Chairman Powell testifies in front of Congress in this week, he is expected to discuss regarding slowing financial activity and surged perils, showing that the Fed is prepared to cut interest rates as required. But Powell might also keep the markets—and the White House—predicting about how early and how deep the Fed plans to cut rates, during its meeting at the end of this month. The succeeding view, priced in the futures market, is for a 100% probability of a quarter-point rate curb.

Jeffrey Nelson
Jeffrey Nelson Subscriber
Lead Editor & Writer At Industry News Works

Owing to great linguistics and awesome skills on editorials; Jeffrey was chosen as the editor of our organization. In addition to publishing, he also writes profound articles on politics, business, and news. His terminologies and concepts regarding economics, finance, politics, and the marketplace are clear. He has been a key contributor to multiple business magazine. His love for coffee keeps him on at work.

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