PMI in Japan, China, and India; Powell’s Remarks

In Tokyo, Japan, industrial factories are surrounded by newer apartment buildings along a canal, creating a unique urban landscape. This juxtaposition of old and new can be seen in various aspects of the city. In the Asia-Pacific markets, most stocks rose on Wednesday following comments from U.S. Federal Reserve Chair Jerome Powell about progress in reining in inflation. Investors were also analyzing data from the region.

In Japan, the au Jibun Bank reported a decrease in private sector activity for the first time in seven months, with the composite purchasing managers’ index falling to 49.7 in June. This decline was attributed to a reduction in services activity outweighing a slight increase in manufacturing output. Meanwhile, in China, the Caixin services purchasing managers’ index indicated the 18th consecutive month of expansion in the services sector, albeit at a slower pace than in previous months.

Traders in Asia were awaiting business activity data from India to be released later in the day. In market updates, Japan’s Nikkei 225 continued its upward trend above the 40,000 mark, while South Korea’s Kospi and Australia’s S&P/ASX 200 also saw gains. Hong Kong’s Hang Seng index rose in early trade, while mainland China’s CSI 300 experienced a slight decline.

Chinese tech giant Alibaba made headlines for repurchasing 613 million of its ordinary shares for $5.8 billion in the quarter ending June, leading to a 1.7% increase in the company’s stock price. In the U.S., major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw gains, with the latter two hitting record high closes. Tesla shares played a significant role in lifting the S&P 500 after the electric vehicle company exceeded delivery expectations for the second quarter.