Asia-Pacific markets experienced a decline on Monday, June 24, 2024, as investors prepared for a week filled with political risks and inflation data from various countries. The Australian and Japanese consumer price index readings were highly anticipated after the Reserve Bank of Australia (RBA) discussed hiking rates at its last meeting.
Australia's S&P/ASX 200 fell 0.65%, while Japan's Nikkei 225 was up 0.24% and the Topix rose by 0.26%. Hong Kong's Hang Seng index dropped by 1.1%, and mainland China's CSI 300 lost 0.5%. South Korea's Kospi dipped by 0.82%, and the small-cap Kosdaq was down by 1.08%. In the United States, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw slight movements.
The Bank of Japan revealed it discussed raising interest rates during its June monetary policy meeting but stated that any change in policy should only be considered after economic indicators confirm a clear rebound in inflation and an increase in medium to long-term inflation expectations. BOJ Governor Kazuo Ueda reportedly told the country's parliament that the central bank could raise rates as soon as its July meeting.
China reported a 2.8% fall in fiscal revenue for the first five months of 2024 compared to 2023, widening from a 2.7% year-on-year fall from January to April. For May alone, fiscal revenue was down by 3.2% year on year.
Technology stocks continued to be in the spotlight as Nvidia shares declined for a second day after hitting an all-time high on Thursday and closing more than 3% lower.
Traders were also preparing for key political events such as the first UK prime ministerial debate, US presidential debate, French legislative election, and various speeches from central bank officials including Bank of Canada Governor Tiff Macklem, San Francisco Fed President Mary Daly, and Fed Governor Christopher Waller.
Asian markets remained cautious amidst ongoing political risks and inflation data releases. The Japanese yen was trading below 160 per dollar as top currency official Masato Kanda stated that authorities were ready to intervene to support it if needed.
