Almost every Asia Pacific major index rose on Friday morning (27 Oct, 9:30 AM, GMT+7, Bangkok time) after falling yesterday. The overnight announcement of US GDP (QoQ) showed the US economy grew by 4.9% in Q3, higher than the market expectation of 4.3% and 2.1% in Q2. It’s the best growth since Q4 of 2021. The market seems to expect the higher for longer interest rate as apparently the US stock market fell even though the GDP came out as a positive. In contrast, the US 10-year bond yield dropped by around 0.1% yesterday to 4.85%, and the T-bond yield retreated just below the 5% level.
In addition, the ECB stood the Eurozone interest rate at 4.5%, while Japan’s Tokyo CPIs, Australia PPI and Chinese YTD industrial profit both showed a sign of recovery. It’s also possible that some market outflows from the US might be an inflow into Asian market this morning.
Japan’s NIKKEI led the market with a 1.44% gain to 31,042.78, together with Hong Kong’s HSI that gained by 1.42% to 17,286.64. Shenzhen’s SZI also followed with 0.97% gain to 9,659.01. The only index that dropped significantly today was New Zealand’s NZX 50 that fell by 0.89% to 10,752.
However, the US markets were volatile last night, as the tech stock continued to fall even though all GDP components came out positive. Dow Jones (DJIA) fell by 0.76% to 32,784.3. NASDAQ dropped by 1.76% to 12,595.61. The S&P 500 also dropped by 1.18% to 4,137.23, while VIX rose by 2.43% to 20.68, indicating the persistent uncertainty in US markets.
Yesterday, crude oil futures dropped by 2% yet again, however, Brent recovered back but still fell by 2.1% to $88.21 per barrel, while the West Texas Intermediate (WTI) also followed with a 2.26% drop to $83.46 a barrel.
As for this morning, Brent rose by 0.98% to $88.79 a barrel, as well as WTI that rose by 0.94% to $83.99 per barrel. Furthermore, the gold futures rose by 0.05% to $1,998.4 per Troy ounce.
