30.06.202213:25 Forex Analysis & Reviews: Asian stock markets trade mixed

Asian stock markets are trading mixed today. Some indicators are rising, including China's Shanghai Composite and Shenzhen Composite, which gained 1.31% and 1.76% respectively. At the same time, Hong Kong's Hang Seng Index added just 0.3%. Other indices, on the other hand, posted losses. Japan's Nikkei 225 declined by 1.68%, Korea's KOSPI fell by 1.47% and Australia's S&P/ASX 200 was down by 1.33%.

There are several reasons for such a mixed trend in the Asian indicators. The Chinese indicators are showing growth due to the easing of restrictive measures and the reopening of industrial and educational establishments.

However, markets were negatively influenced by the released US economic growth figures. According to the latest data, US GDP declined by 1.6% year-on-year, which exceeded experts' expectations of a 1.5% fall. The figure also surpassed preliminary estimates. It was expected to shrink by 1.4%.

According to preliminary data, Japan's industrial output slumped by 7.2% month-on-month in the previous month. This was the second month in a row and the rate of decline was the fastest since the start of Covid-19. Experts predicted a decrease of 0.3%. In April the figure was only 1.5%.

Of the companies in the Nikkei 225 index, Japan Exchange Group, Inc. was the biggest loser, with its shares down by 6.8%. SCREEN Holdings, Co. lost 5.2%, and NEXON, Co. fell by 5%.

The Purchasing Managers' Index in the PRC rose to 50.2 in June from 49.6 in May. This was the first time in the last four months that the indicator climbed above 50 points. This indicates an increase in business activity associated with the lifting of restrictive measures in major Chinese cities. At the same time, experts predicted that the figure should have risen to 50.5 points.Sino Biopharmaceutical (+6.2%), Li Ning (+4.3%) and China Resources Beer Holdings (+3.9%) were the biggest gainers of the Hang Seng Index.

According to the latest data, South Korea recorded a 0.1% month-on-month fall in retail sales in May (in April the indicator posted a decrease of 0.2%). On a year-on-year basis, however, it climbed by 0.7% in May compared with April's level of 0.4%.

The country's industrial production also rose by 0.1% in May following a decline of 3.3% in April. However, it did not reach the level forecasted by analysts. They expected an increase of 0.5%. On an annualised basis, the figure rose by 7.3% in May compared with an increase of 3.5% in April. The indicator surpassed experts' expectations of a 3.1% increase.

One of the country's largest companies, Hyundai Motor, added 3.7%, while Samsung Electronics Co. fell by 1%.

Investor fears of monetary tightening by the world's largest central banks, which could lead to an economic slowdown, contributed to the plunge in the Australian S&P/ASX 200.

Share prices of the country's largest companies posted declines, following the index itself. BHP Group, Ltd. was down by 2.1% and Rio Tinto, Ltd. shed by 2.4%.