Asia markets in red, yen on intervention watch; eyes on updates as Third Plenum unfolds

The Asia-Pacific equity market were mostly in red on Wednesday as investors absorbed President Xi Jinping’s recent address at the Third Plenum, and yen remains on intervention watch.

Japan (NKY:IND) -0.43%. The Japanese yen steadied around 158.4 per dollar, near its strongest levels in a month, supported by fears that authorities could prop up the currency through another intervention.

The Reuters Tankan survey showed that business sentiment among large manufacturers in Japan improved to a seven-month high in July to +11 from +6 in June, although confidence among non-manufacturers declined amid a patchy economic outlook.

The survey comes ahead of the Bank of Japan’s July policy meeting, where it could raise rates again and announce its bond purchase tapering plans.

China (SHCOMP) -0.41%. Market participants digested President Xi Jinping’s recent address at the Third Plenum. Xi urged the Communist Party to maintain ‘unwavering faith and commitment’ to his strategic agenda amidst challenging domestic and international conditions, marked by sluggish economic growth and geopolitical tensions.

The country’s Third Plenum continued to be spotlighted, as reform measures could be announced when the event concludes Thursday.

Hong Kong (HSI) -0.01%. Markets moved away from their lowest level in three weeks, with investors hoping for more state-led support during the ongoing Third Plenum meeting that could speed up economic turnaround in China.

India (SENSEX) market closed.

Australia (AS51) +0.96%. The S&P/ASX 200 Index hits fresh all-time highs.

The Westpac-Melbourne Institute Leading Economic Index in Australia was flat on the month in June 2024, remaining muted for the third consecutive month.

Investors now look ahead to Australian employment numbers later in the week to gauge the state of the labor market.

In the U.S., on Tuesday, all three major indexes ended mixed amid firm expectations that the Federal Reserve will start cutting interest rates in September, while retail sales data had minimal impact on risk appetite.

U.S. stock futures were mixed on Wednesday after the Dow rallied to a new record high in the previous session: Dow flat; S&P 500 -0.21%; Nasdaq -0.39%.

Investors now look ahead to the Fed’s Beige Book on Wednesday, as well as housing starts and building permits data for June.

Bitcoin climbed above $65,000, hitting its highest levels in nearly a month, amid a resurgence in bullish sentiment toward cryptocurrencies.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

More on Asia: