Japan's Nikkei Rises Over 3% for Best Week in 4 Years
- Japan's Nikkei index jumped over 3% for the best week in 4 years.
- Traders analyzed Singapore's strong non-oil exports data, outperforming expectations.
- The market rally in Asia contributed to the positive sentiment in the region.
Asian markets experienced a significant rally on August 15, 2024, tracking gains on Wall Street after encouraging U.S. economic data alleviated recession fears. The Nikkei 225 soared by 3.64%, surpassing the 38,000 mark for the first time since early August, while the broader Topix index rose by 2.99%, marking its best weekly performance since April 2020 with an 8.67% increase. In Japan, the positive sentiment was echoed by Wolfe Research chief economist Stephanie Roth, who noted that solid retail sales and claims data served as a reminder of the resilience of the U.S. economy. Meanwhile, Singapore reported a remarkable 15.7% year-on-year growth in non-oil domestic exports for July, a significant rebound from a decline in June and far exceeding expectations of a mere 1.2% growth. Despite the optimistic outlook, Reserve Bank of Australia Governor Michelle Bullock cautioned against premature assumptions regarding interest rate cuts. She emphasized that inflation remains "too high" and is not expected to return to the RBA's target range of 2% to 3% until late next year. In other Asian markets, Hong Kong's Hang Seng index rose by 1.81%, and mainland China's CSI 300 gained 0.11%, continuing its recovery after hitting a six-month low. This positive trend followed a strong performance in the U.S., where the Dow Jones Industrial Average and S&P 500 both recorded substantial gains.