Asian Markets React to Surprising Drop in U.S. Inflation
Asia-Pacific markets were mixed as U.S. inflation came in lower than expected, raising hopes of a "soft landing" in the inflation fight. Australia's S&P/ASX 200 and South Korea's Kospi were lower, while Hong Kong's Hang Seng and China's CSI300 index also declined. Japan's markets were closed for a public holiday. India's largest exporter of basmati rice, KRBL, stated that there should be no overall supply constraints in the global rice market, but short-term concerns remain due to El Nino in some East Asian markets. Singapore stocks fell after the country's trade and industry ministry narrowed its GDP forecast for 2023. Shares of Chinese real estate company Country Garden Holdings hit a record low after issuing a profit warning. Alibaba shares surged over 3% after the company reported a 51% rise in earnings for the second quarter. New Zealand's factory activity contracted at its fastest pace since August 2021, while Singapore's economy expanded 0.5% in the second quarter. The U.S. consumer price index rose 3.2% annually in July, slightly less than expected. Renowned value investor Guy Spier warned of potential risks in U.S. regional banks, and CNBC Pro highlighted seven beaten-down global stocks that analysts expect to double in value. Alibaba's shares jumped 4% as investors cheered its strongest annual earnings growth since 2021. Communication services stocks outperformed the S&P 500, while real estate stocks lagged.
