After surging to record highs, the global markets have become cautious before making its next move. On Wednesday, the US market closed with deep cuts after the payrolls data was much below the expectations. On Thursday morning, the Asian markets are trading mix.
The Shanghai Composite in mainland China declined 0.46% and Hong Kong’s Hang Seng index edged 0.25% higher. Japan’s Nikkei 225 gained 0.31% in morning trade while the Topix index advanced 0.25%. South Korea’s Kospi stood little changed.
A flurry of news during the trading hours on Wall Street, kept investors guessing about the future of inflation and interest rates. A couple of top Federal Reserve officials, in their public speech, projected higher interest earlier than market expectations. They also warned about a possible cut in the monthly bond purchase programme by the American central bank. These comments invited selling in government treasuries and buying in the US dollar.
However, strong earnings growth and recovery in demand is helping the equity market.