New Zealand and Japan in Economic News
- Asia-Pacific markets experience mixed trends with New Zealand cutting rates and Japan's Prime Minister Kishida announcing resignation.
- Japanese manufacturers show slight decrease in confidence as per the Reuters Tankan survey for August.
- Nikkei falls as Kishida to step down in September.
The U.S. producer price index (PPI), a key indicator of wholesale inflation, rose by 0.1% last month, falling short of the anticipated 0.2% increase. This modest rise reflects ongoing economic uncertainties as various global markets react to shifting monetary policies and economic conditions. In Japan, Prime Minister Fumio Kishida announced he would not seek reelection as leader of the Liberal Democratic Party, signaling a potential shift in the political landscape. In a surprising move, the Reserve Bank of New Zealand lowered its benchmark cash rate to 5.25%, defying economists' expectations that it would remain at 5.5%. This decision comes as South Korea reported a decrease in its seasonally adjusted unemployment rate, which fell to 2.5% in August, the lowest level since October 2023. However, Japan's business sentiment among manufacturers dipped slightly in August, attributed to weak demand from China, following the Bank of Japan's recent interest rate hike. On the stock market front, South Korea's Kospi index rose by 0.71%, while the Kosdaq saw a more significant increase of 1.62%. In contrast, Hong Kong's Hang Seng index experienced a slight decline of 0.14%, and the mainland Chinese CSI 300 fell by 0.61%. Additionally, the Australian Securities and Investments Commission has initiated legal action against the ASX for allegedly misleading statements regarding its CHESS project, raising concerns about transparency in the financial sector.