India's equity benchmarks to open higher as firm US data boosts global sentiment
The Gift Nifty futures were trading at 25,185.5 points as of 8:04 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open above Thursday's close of 25,111.45.
Asian stocks rose on the day, with MSCI's broadest index for Asia-Pacific stocks outside Japan (.MIAPJ0000PUS), opens new tab up 0.7%, while S&P 500 (.SPX), opens new tab and Nasdaq (.IXIC), opens new tab notched record closing highs overnight.
On Thursday, data showed U.S. retail sales rose after two months of decline in June, while fewer-than-expected jobless claims were filed last week, indicating resilience in the world's largest economy, which boosted investor confidence globally.
In India, benchmark Nifty is down 0.2% so far this week, after logging two straight weekly losses amid a weak start to the earnings season, particularly from IT majors such as Tata Consultancy Services (TCS.NS), opens new tab and HCLTech (HCLT.NS), opens new tab.
Bucking that trend, Wipro (WIPR.NS), opens new tab beat earnings expectations on Thursday, boosted by improved client spending in parts of its Americas business. The IT company's U.S.-listed shares jumped 3.4% following the results.
Its peer LTIMindtree (LTIM.NS), opens new tab narrowly missed revenue estimates for the June quarter as persistent inflation, weak demand and U.S. trade policy uncertainties delayed non-essential tech projects.
Meanwhile, Axis Bank's (AXBK.NS), opens new tab UK-listed shares slipped nearly 5% on Thursday after the lender posted an unexpected drop in first-quarter profit due to an increase in bad loans after a one-time industry benchmarking exercise.
Reliance Industries (RELI.NS), opens new tab and JSW Steel (JSTL.NS), opens new tab will also be in focus on Friday, as the companies are scheduled to report their first-quarter earnings.
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Reuters
17 minutes ago
- Reuters
Nikkei surges in boost to Asia as Trump announces Japan trade deal
SYDNEY, July 23 (Reuters) - A rally in Japanese shares led Asian markets on Wednesday after President Donald Trump announced a trade deal with Japan and fuelled hopes of more to come, tempering the disappointment from U.S. earnings that highlighted the drag from higher tariffs. Trump late on Tuesday said a trade deal with Tokyo will include Japan paying a lower 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. "Expectations for a breakthrough were low, so Trump's announcement delivers a mild upside surprise — providing near-term relief for Japanese equities," said Charu Chanana, chief investment strategist at Saxo. "Strategically, the deal allows Japan to sidestep immediate tariff escalation, while Trump's attention shifts elsewhere." Japan's Nikkei (.N225), opens new tab jumped 2.6% on Wednesday as shares of automakers surged on news the deal lowers the auto tariff to 15%, from a proposed 25%. Mazda Motor (7261.T), opens new tab rallied 17% while Toyota Motor (7203.T), opens new tab jumped 11%. Japanese government bonds slid, with the yields for 10-year JGBs up a whopping 8.5 bps at 1.585%, as the reduced uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes. The reaction in the yen was more muted, eking out a small 0.1% gain to 146.42 per dollar . Traders are on edge as Japanese Prime Minister Shigeru Ishiba was planning to soon decide whether to step down after assessing the outcome of the trade deal, Yomiuri newspaper said. Trump also said representatives from the European Union are coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, as markets were worried about broader EU countermeasures amid receding signs of a trade agreement with Washington. EUROSTOXX 50 futures rose 0.8%, while Wall Street futures , were up about 0.1%. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Chinese blue-chips (.CSI300), opens new tab edged up 0.3% and Hong Kong's Hang Seng index (.HSI), opens new tab gained 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab advanced 0.6%. Overnight, Wall Street closed mixed as investors assessed a spate of earnings that pointed to signs that Trump's trade war is hitting corporate profit margins. General Motors (GM.N), opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Shares of RTX (RTX.N), opens new tab dropped 1.6% after the aerospace and defense giant took a hit from tariffs despite strong demand for its engines and aftermarket services. Investors are now waiting for results from Tesla (TSLA.O), opens new tab and Google's parent Alphabet (GOOGL.O), opens new tab - the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, moves are a little muted with the dollar holding onto overnight losses along with lower Treasury yields. The dollar index was flat at 97.45, having slipped 0.4% overnight for its third straight day of declines. The euro dipped 0.1% to $1.1739 after rising 0.5% overnight. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.3559%, after slipping 3 bps overnight, as Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, although Bessent said there was no need for him to step down immediately. Bessent did say the Fed's vital independence on monetary policy is threatened by its "mandate creep" into non-policy areas and he called on the U.S. central bank to conduct an exhaustive review of those operations. Oil prices gained a little on Wednesday. U.S. crude rose 0.4% to $65.60 per barrel, while Brent was at $68.88 per barrel, up 0.4%. Spot gold prices were steady at $3,429 an ounce.
BBC News
17 minutes ago
- BBC News
Trump announces 'massive' trade deal with Japan, agreement with Philippines
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Reuters
17 minutes ago
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BOJ's Uchida warns of downside risks to economy on trade uncertainty
KOCHI, Japan, July 23 (Reuters) - Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday that risks to economic activity and prices were skewed to the downside due to "extremely high" uncertainty over trade policy and its effect on domestic and overseas growth. The BOJ will continue to raise its policy interest rate if the economy and prices move in line with its projections, Uchida said in a speech. But Uchida said the central bank will scrutinise "without any preconceptions" whether its projections will materialise due to a lack of clarity on how U.S. trade policy unfolds, and affects the global economy and markets. If some progress is made in U.S. President Donald Trump's trade negotiations with other countries, Japanese companies will likely enjoy strong profits and continue hiking wages, he said. "But if the negative impact of tariff policies turns out to be greater or more prolonged than expected, the wage-hike trend seen in the past few years could weaken," Uchida said. "The BOJ needs to adjust monetary policy to best balance upside and downside risks from the perspective of maintaining economic and price stability," he added.
