Asia-Pacific stock markets began Tuesday’s session with a mixed performance, as investors parsed a crucial economic growth report from China that topped analysts’ forecasts.
While the better-than-expected data from the Asian giant provided some support, broader market sentiment remained cautious, with some regional indices dipping. Indian benchmarks, including the Sensex, are expected to open slightly higher.
The main focus for investors this morning was the release of China’s second-quarter Gross Domestic Product (GDP) data.
The world’s second-largest economy expanded by 5.2% in the second quarter compared to a year earlier, according to China’s National Bureau of Statistics.
This figure surpassed the 5.1% growth that economists polled by Reuters had forecasted. However, the latest reading also indicates a slight slowdown from the 5.4% growth registered in the first quarter, presenting a nuanced picture of the country’s economic health.
Investors will also be keeping a close watch on other data points from China today, including urban investment and retail sales figures for June.
A divergent picture across the region
The market’s reaction to this data was varied across Asia. As of 8:10 a.m. Singapore time, Japan’s Nikkei 225 benchmark was flat, while the broader Topix index managed to add 0.32%.
In South Korea, the Kospi index was down 0.31%, while the small-cap Kosdaq moved up 0.26%. Over in Australia, the S&P/ASX 200 benchmark advanced by a solid 0.66%.
This mixed start came after pre-market futures had pointed towards a generally positive open for most of the region.
Futures for Hong Kong’s Hang Seng index had stood at 24,264, suggesting a stronger open compared to its last close of 24,203.32. Similarly, futures for Japan’s Nikkei 225 and Australia’s S&P/ASX 200 were also pointing higher.
Bitcoin cools, gold shines amid lingering uncertainty
In the cryptocurrency space, Bitcoin traded in negative territory on Tuesday, pulling back after its landmark achievement in the previous session.
The leading digital asset had rallied to cross the $120,000 threshold for the first time on Monday, hitting a new record high. As of 10:51 a.m.
Singapore time, Bitcoin had declined 1.6% to trade at $118,301.70, suggesting some consolidation after its powerful surge.
In contrast, traditional safe-haven asset gold continued to rise on Tuesday, building on its gains from the previous session where it had topped a three-week high. As of 10:55 a.m.
Singapore time, the precious metal was up 0.16% at $3,348.80 per ounce. The persistent demand for gold reflects ongoing investor concerns about mounting geopolitical tensions and the uncertainties stemming from President Donald Trump’s on-again-off-again tariff policies, which have sent gold prices up by around 28% since the start of the year.
Indian markets poised for higher start on inflation relief
Indian benchmark indices, the Sensex and Nifty, are expected to open slightly higher on Tuesday, July 15. The positive sentiment is being supported by a sharp fall in domestic inflation and the generally positive signals from other Asian markets.
The Gift Nifty futures were trading at 25,166 points around 8:22 am, suggesting a possible higher start for the Nifty50 index, which had closed at 25,082.3 on Monday.
This points to a sense of cautious optimism on Dalal Street, which could potentially end a four-day losing streak for the market.
A key domestic driver is the recent inflation data. Retail inflation in India eased sharply to 2.10% in June, touching a six-year low.
This marks the fifth consecutive month that inflation has remained below the Reserve Bank of India’s target of 4%, and it is well within the central bank’s upper tolerance band of 6%.
This significant drop in inflation has raised expectations of more interest rate cuts in the coming months, which could provide a further boost to economic growth and market sentiment.
US market backdrop
Investors are also looking ahead to the start of the second-quarter earnings season on Wall Street and awaiting a key US inflation reading later in the week.
US stock futures opened little changed on Monday night, following a session where all three key benchmarks in the US ended higher.
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