· Asia-Pacific stocks rise; Reserve Bank of New Zealand keeps rates unchanged
RBNZ holds rate steady
The Reserve Bank of New Zealand announced Wednesday that it would keep its monetary settings unchanged, leaving the official cash rate at 0.25%. Analysts had expected that New Zealand could be the first advanced economy in Asia-Pacific to raise interest rates in the pandemic era of easy monetary policy.
· Nikkei snaps 4-day losing streak, but Delta worries persist
Japanese shares bounced back on Wednesday, led by gains in Fujifilm and other defensive stocks, with the Nikkei share average snapping its four-day losing streak, but concerns about the Delta variant kept investors on guard.
The Nikkei rose 0.59% to 27,585.91, reversing its earlier losses when it hit its lowest level since July 30. The broader Topix rose 0.44% to 1,923.97.
· Mainland Chinese stocks advanced. The Shanghai composite gained 0.56% while the Shenzhen component rose 0.379%. Hong Kong’s Hang Seng index traded 0.75% higher.
South Korea’s Kospi advanced 0.98% while in Australia, the S&P/ASX 200 hovered around the flatline.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.6% higher.
European markets were slightly higher on Wednesday morning, as investors monitored inflation data and looked ahead to the minutes from the Federal Reserve’s latest meeting.
The pan-European Stoxx 600 index rose by just 0.1% in early deals, with travel and leisure stocks leading the gains.
Market participants were closely monitoring economic data. U.K. inflation data for July showed an unexpected dip to 2% on Wednesday morning. Economists noted that it was likely a blip with data projected to keep trending higher in the coming months. Euro area inflation rate figures for last month are expected later in the session.
· Morgan Stanley’s Mike Wilson sets S&P 500 year-end target of 4,000
CNBC’s ‘Squawk Box’ team discusses markets and outlook with Mike Wilson, chief investment officer of Morgan Stanley.
Reference: CNBC, Reuters
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