Asian markets decline, Japan’s GDP grew much more than expected

At the time of review, Japan’s Nikkei 225 index was down 1.34 percent, and Hong Kong’s Hang Seng index was down 0.66 percent.

The CSI 300 index, which describes the stock markets of mainland China, was up 0.09 percent, and South Korea’s Kospi index was down 0.71 percent. In Australia, Taiwan and New Zealand, trade also started in a downward direction.

Japan’s GDP grew by 2.7 percent in the first quarter of the year. The economist forecast was 1.9 percent. Private and domestic demand grew. Exports and imports both decreased.

The Bank of Canada unexpectedly raised its key interest rate yesterday. Earlier in the week, an interest rate hike surprise was also received from Australia. After the Bank of Canada’s decision, the market-priced probability of a Fed rate hike increased, government bond interest rates in Asia and Australia rose, and stock market prices fell.

Wall Street closed mixed yesterday with the Dow Jones up 0.27 percent, but the S&P 500 down 0.38 percent and the Nasdaq down 1.29 percent. Index futures predict a bearish opening for Wall Street. To Europe Index futures mainly predict a bearish opening.

At 7:55 a.m. one euro was worth 1.07 dollars, 149.68 yen, 0.86 pounds or 11.66 Swedish kronor. The dollar was 139.72 yen and the pound was 1.25 dollars.