The BSE Sensex pared some initial losses and closed marginally up at 80,905.3 on Wednesday, as small gains in consumer stocks offset a drop in financials. Meanwhile, global markets remained cautious ahead of the release of the Fed's July meeting minutes and a speech by the Fed Chair at the Jackson Hole Symposium, seeking clear hints about the trajectory of interest rate cuts. Traders are also awaiting India's factory activity and manufacturing sector data for August, due on Thursday, following a slowdown in both sectors in July.
The Nikkei 225 Index jumped 0.7% to above 38,200 on Thursday, hitting its highest levels in three weeks and tracking gains on Wall Street overnight as strong earnings from major US retailers and dovish Federal Reserve minutes lifted market sentiment. The broader Topix Index also climbed 0.3% to 2,673. Domestically, investors reacted to data showing private sector growth in Japan reached a 15-month high in August on robust services activity, while manufacturing activity contracted more than expected. Meanwhile, markets monitored currency moves closely as a rallying yen put some downward pressure on local stocks. Notable gains were seen from index heavyweights such as Fast Retailing (2.5%), Shin-Etsu Chemical (3.2%), Keyence (1%), Advantest (1.6%) and Mercari (6.2%).
The Shanghai Composite fell 0.1% to around 2,854 while the Shenzhen Component dropped 0.7% to 8,170 on Thursday, with mainland stocks sliding for the third straight session as persistent economic concerns and the lack of forceful stimulus measures in China dampened investor sentiment. Earlier this week, the People’s Bank of China decided to keep key lending rates unchanged and signaled caution in adjusting monetary policy. Investors’ concerns about China’s ongoing geopolitical and trade tensions with other major economies kept local stocks from rebounding. Notable losses were seen from heavyweight firms such as Seres Group (-6.1%), Wuhan P&S (-2.8%), ZTE Corp (-3.9%), Zhejiang Publishing (-9.9%) and Kweichow Moutai (-1.2%).
