Asian stock markets concluded their trading sessions with mixed results as investors closely monitored the progress of negotiations to raise the US debt ceiling. The outcome of these discussions held significant implications for global financial markets.
In Australia, the S&P/ASX 200 edged up to 7,270.80, an increase of 7.50 points or 0.10%. The All Ordinaries also experienced a slight gain, closing at 7,457.60, up 6.90 points or 0.093%. Energy stocks played a prominent role in driving the market higher. However, investor attention remained fixed on the ongoing US debt ceiling negotiations.
Meanwhile, Tokyo’s Nikkei experienced a decline, halting an eight-day streak of consecutive gains. It closed at 30,957.77, down 129.05 points or 0.42%. Investors chose to take profits after the Nikkei reached its highest level in 33 years earlier in the day.
In South Korea, the Composite (KOSPI) extended its winning streak for the seventh consecutive day, closing at 2,567.55, up 10.47 points or 0.41%. Chemical and steel stocks led the gains. Similarly, investors in South Korea kept a watchful eye on the outcome of the US debt ceiling negotiations, as a default on federal debt would have far-reaching consequences. The South Korean won also strengthened against the US dollar.
In China, the Shanghai Composite recorded a decline of 50.23 points or 1.52%, closing at 3,246.24. Concerns about a slowdown in China’s economy, including the depreciation of the yuan and geopolitical risks, weighed on investor sentiment.
Hong Kong’s Hang Seng also experienced a downward trend, closing at 19,431.25, down 246.92 points or 1.25%. Investors in Hong Kong shared the same concerns as their counterparts across the region, keeping a close watch on the US debt ceiling negotiations to avoid a potential default.