Category: Markets

According to the world economies financial reports, the dollar has seen an uptake of 0.35% in 2021 to $1.167 for every Euro value. The dollar valuation has reached its highest peak from the November 2020 financial index. In 2021, the US dollar ascended to record-breaking levels on the New Zealand and Australian dollar valuations. 

However, the Asian financial market is witnessing a descent in its economic levels after the dollar accelerated by 10x levels on Thursday, August, 19th 2021. The rise in dollar valuation is a double-edged sword for international financial growth as it is still grappling with a pandemic-stricken market environment. Moreover, there hasn’t been any central bank assistance to encourage business investors in the pathway of secured funds. 

Oil exports stocks have also seen a consecutive decline accounting for monthly depreciated values. Additionally, the valuation of copper is witnessing a two-month dip in profits. In another market depreciation, S&P has declined by 0.4%, and the outcome of daily listing recorded a 0.86% decline for futures of Europe STOXX 50. 

The index of the New York-based MSCI firm for the Asian-Pacific market signals Japan’s 1.63% decline in valuation since December 2020 records. Japan’s economic share aggregates have depreciated, with a record of a 1.1% decline from its January 2021 listings. The outcome of Japan’s depreciated financial levels is due to automobile brand Toyota Motor’s shares slashing 40% from September 2021. 

Recently, the U.S. Treasury returns on investment for APAC market exchanges have also witnessed a slowdown. The central mode of interest in the Fed’s yearly financial analysis will be delivered next week in the meeting at Jackson Hole, Wyoming. The performance index for the 10-year term was at a 1.2430% growth value. 

As for valuations in oil, there have been reports of consecutive six-day clampdowns and a three-month-long depreciation level, according to reports dated 19th August 2021. 

Trading analysts forecast that a bull market can not be found in the APAC market expanse due to the surge of the new COVID delta variant. Furthermore, The Federal Reserve’s latest meeting declared that a decline in asset acquisitions would worsen the already fragile financial listings in the APAC economies.

The majority of Asian markets are experiencing a growth pattern, and Wall Street suggests the interest rates will remain low. The growth was witnessed in Seoul, but Hong Kong experienced a slight decrease. Nikkei 225 (NIK) from Japan experienced +0.55%, resulting in an 0.8% rise on 10th May. Australia showcased even higher growth, with S&P/ASX 200 (XJO) witnessing +1.30% resulting in 1% growth. South Korea followed the trend with Kospi 180721 showing +1.63% resulting in 1.4% growth. Contrarily, Hong Kong witnessed a dip with Hang Seng (HSI) showing -0.22% resulting in a 0.3% decrease. The Shanghai Composite (SHCOMP) presented +0.23%, resulting in 0.1% growth. Indonesian market JAKIDX showed a 0.89% growth, but Singapore and Taiwan both highlighted a minor dip. STI in Singapore showed -0.51% and Y9999 showed a -0.29% decrease.

While some regions are facing a dip, the overall consensus around the region is high. Considering how the pandemic is affecting the market, garnering such growth is a commendable feat. Other than the ongoing concerns, Japan is welcoming thousands of officials and players from around the globe. With the Tokyo Olympics on the way, Japan is merely 3% vaccinated at the moment. While the officials and players are certain to be vaccinated, the ongoing settings in Japan can be a concern.

Yeap Jun Rong (Singapore IG’s market strategist) stated that investors are looking out for inflation. They are also keeping a close eye on the sales data from the US and the economic growth data from Britain.

Japan has recently witnessed a surge in share prices due to strong worldwide revenue. Within the Japanese market, the automakers appear to be cruising. Toyota Motor Co. (TM) with +0.45%, Nissan Motor Co. 7201 with +4.39%, and Honda Motor Co. (HMC) +0.88% are the top earners. The US dollar USDJPY showcased 0.37% growth in the currency trading circle, equaling 108.87 Japanese Yen.

Despite the concurring health outbreak, the Asian share market is showing great potential. The majority of the markets show growth, with an occasional minor dip. Things might get tricky in Japan due to the nearing Tokyo Olympics, but the share market is running seamlessly. The data from Wall Street also indicates upcoming low-interest rates to investors.