On Tuesday morning (8 October, 9:44 AM, GMT+7, Bangkok time), most indices in Asia Pacific declined, with traders assessing key indicators such as August pay and spending figures from Japan. On the other hand, Chinese markets saw a remarkable surge of over 10% at the opening after trading resumed on Tuesday following the Golden Week holiday. This reflects continued investor enthusiasm spurred by Beijing’s recent stimulus measures.
In August, household spending in Japan saw a year-on-year decrease of 1.9% in real terms. This decline, though softer than the anticipated 2.6% drop according to a Reuters poll, marks the swiftest contraction since January, when spending plummeted by 6.3% year-on-year.
The previous decline in January occurred before substantial pay raises were implemented following spring wage negotiations, leading to the largest wage hikes for unionized Japanese workers in 33 years.
Despite the downturn in spending, real wages in Japan experienced an upturn in August. Data from the statistics bureau revealed a 2% increase in wages, rising to an average of 574,334 yen ($3,877.44).
Japan’s NIKKEI dropped by 1.13% to 38,889.81. South Korea’s KOSPI fell by 0.7% to 2,592.15, and Australia’s ASX 200 dipped by 0.22% to 8,187.2.
As for stocks in China, Shanghai’s SSEC jumped by 4.28% to 3,479.23. Shenzhen’s SZI soared by 7.55% to 11,324.87, while Hong Kong’s HSI slumped by 6.76% to 21,537.32.
Meanwhile, the US stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) contracted by 0.94% to 41,954.24. NASDAQ lost 1.18% to 17,923.9, and S&P 500 decreased by 0.96% to 5,695.94. VIX rose by 17.86% to 22.64.
As for commodities, oil prices settled higher on Monday, with Brent crude surpassing $80 per barrel for the first time since August. The spike in prices was triggered by heightened concerns over a potential Middle East conflict, prompting investors to exit historically high bearish positions accumulated the previous month. Brent futures increased $2.88 or 3.7% to $80.93 a barrel, and the West Texas Intermediate (WTI) gained $2.76 or 3.7% to $77.14 per barrel.
This morning, Brent futures dropped $1.34 or 1.66% to $79.59 a barrel, and the WTI fell $1.36 or 1.76% to $75.78 per barrel.
Meanwhile, gold futures dipped by 0.43% to $2,654.5 per Troy ounce.
