Jerome Powell's Job Secure, Asia Markets React
The mixed economic data from Japan, Singapore, and Australia has created a complex landscape for investors, who are now waiting to see how the situation unfolds. With the US-China trade tensions and Trump's tariff threats still looming, the region's markets are expected to remain volatile, making it essential for investors to stay informed and adapt to the changing circumstances.
US President Donald Trump has denied intentions to fire Federal Reserve Chairman Jerome Powell, calming investor concerns and influencing Asia-Pacific markets, which mostly rose on Thursday. Trump's comments came after he initially told Republican lawmakers he would fire Powell, but later stated it was "highly unlikely" unless fraud was involved.
Japan's trade data showed a decline in exports for the second consecutive month, fueling recession fears. However, Singapore's non-oil domestic exports surpassed forecasts in June, increasing by 13% compared to the same period last year. Australia's unemployment rate rose to a 43-month high in June, exceeding the anticipated 4.1% increase. Despite these mixed economic indicators, most Asia-Pacific markets ended the day on a positive note.
Hong Kong's Hang Seng Index closed flat, while mainland China's index increased by 0.68%. Japan's benchmark Nikkei 225 added 0.6%, and the broader Topix index rose 0.72%. South Korea's Kospi index moved up 0.19%, and the small-cap Kosdaq advanced 0.74%. Australia's benchmark ended the day 0.9% higher, reflecting the overall positive trend in the region.
The denial of Trump's intent to fire Jerome Powell has alleviated some concerns in the financial markets. As investors continue to assess the situation, they will also be keeping a close eye on the upcoming trade negotiations and economic data releases, which will likely influence the direction of Asia-Pacific markets in the coming days.