Stock markets in Asia experienced mixed results on Wednesday, with some indices rebounding from downturns while others continued to decline. In India, the Nifty 50 index and the BSE Sensex both bounced back from a decline on Tuesday following the country’s general elections. The indices had both fallen significantly in response to the election results, which saw Prime Minister Narendra Modi and the BJP emerge as the largest party, albeit with a weaker outcome than anticipated. However, on Wednesday, both indices were up by 0.7 percent.
In China, the Caixin purchasing managers’ index showed improvement in May compared to April, exceeding expectations. This was reflected in Mainland China’s CSI 300 index which saw a slight decrease, while Hong Kong’s Hang Seng index rose. Despite this positive news for China, economic data released in Japan showed that real wages continued to decline in April, marking the 25th consecutive month of decreases. Both the Topix index and the NIKKEI index were down on Wednesday.
South Korea’s Kospi posted gains on Wednesday, while the Shanghai stock exchange saw a slight decrease. Futures indicated a cautious opening for European and US markets as economic data such as service sector PMIs from the eurozone and producer price indices from various countries were set to be released later in the day. In the foreign exchange market, currency traders watched closely as they saw fluctuations in currency values against other major currencies including a weakened Japanese yen against other major currencies like USD and EUR.
Overall it seems that while some Asian markets were showing signs of recovery after declining earlier in week due to election results or economic data releases , others were still struggling with negative trends such as declining real wages or weakening currencies .
