Mixed results for Asian markets: Japan's growth bolstered by robust GDP figures, while Hong Kong experiences decline due to weakened China data
Global Market Summary: 5 August 2022
China's industrial output growth slowed to a seven-month low in July, marking a deceleration in the country's economic momentum. The jobless rate climbed to 5.2%, and both industrial production and retail sales missed targets. However, China's stock market, represented by the Shanghai Composite, rose 0.82% to around 3,670 on Friday.
In contrast, Japan's economy accelerated by 0.3% in Q2, beating forecasts. The primary reason behind this growth was a combination of increased business investment and a positive contribution from net trade. Business investment gained momentum, rising 1.3%, and net trade added 0.3 percentage points to growth as exports rebounded strongly and imports slowed sharply.
The Japanese yen firmed toward 147 per dollar on Friday, while Japan's stock market, represented by the Nikkei 225, rose 1.64% to above 42,800. Total passenger vehicle sales in India increased by 1.5% year-on-year to a four-month high of 301,251 units in July 2025.
Australia's ASX 51 rose 0.64% to around 8,890 on Friday. The Australian dollar held its decline around $0.649, and the unemployment rate dropped to 4.2%. Australia's central bank cut interest rates to 3.6% in July, the lowest level since April 2023.
In the United States, U.S. stock futures held steady on Friday, and all three major indexes ended mixed on Thursday. The Trump administration is reportedly in talks with Intel about a potential U.S. government stake in the struggling chipmaker.
India's stock market, represented by the Sensex, is closed on Friday. India's Prime Minister Narendra Modi announced plans for GST reforms, promising tax relief on everyday goods. Investor sentiment in Australia remained cautious ahead of key data releases next week.
Hong Kong's stock market, represented by the Hang Seng Index, fell 1.27% to 25,192 in early Friday trade. China's consumer prices remained flat, beating forecasts, while producer prices contracted for the 34th month. China's fixed-asset investment increased by 1.6% year-on-year in the January-July 2022 period, and new home prices in 70 cities contracted at a slower pace in July.
Overall, global markets showed mixed performances, with some economies accelerating while others slowed. The coming week promises key data releases that may provide further insights into the global economic landscape.
- Despite China's economic slowdown, the Chinese government might find potential for increased investment in the sports sector, given the booming popularity of sports in the country.
- The weather forecast for the upcoming sports events in Japan could significantly impact the performance of the local teams, given the country's climate sensitivity.
