Asia sees increasing interest rates in markets

The Japanese yen continued to weaken on Friday as Asian stock markets were broadly up at the end of the stock market week. In Japan, the TOPIX index rose by 0.3 percent and the Nikkei index by 0.2 percent, with the real estate and energy sectors showing the biggest increase. However, the technology and discretionary consumption sectors were down. In Hong Kong, the Hang Seng index was up 1.7 percent, while mainland China saw exchange rates on a gentle decline.

The mood in Hong Kong was lifted by news of a potential exemption for private investors from dividend tax if they trade through the Stock Connect program. However, in mainland China, the mood was dampened by the US administration’s plans to tighten tariffs on Chinese imports. Meanwhile, rates in India and Taiwan were rising, while in the US, weekly unemployment numbers exceeded forecasts, leading to speculation about a possible interest rate cut by the Fed in September.

On the foreign exchange market, the decline of the yen continued with a 0.1 percent weakening against other major currencies on Friday. Moving forward, a mild upward opening was expected for European stock exchanges, with US Index Futures also slightly up in the morning. Overall, the global market outlook was mixed, with various factors influencing trading activities.