Asian Stock Markets Mixed: India Bounces Back, China and Japan Underperform

On Wednesday, stock markets in Asia experienced mixed results. In India, the indices bounced back from a downturn on Tuesday following the country’s general elections. The Nifty 50 index and the BSE Sensex had both declined 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.

Meanwhile, in China, the Caixin purchasing managers’ index showed improvement in May compared to April, exceeding expectations. Mainland China’s CSI 300 index saw a slight decrease, while Hong Kong’s Hang Seng index rose. In Japan, 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, while the Shanghai stock exchange saw a slight decrease. Futures indicated a cautious opening for European and US markets. Economic data to be released included service sector PMIs from the eurozone and producer price indices from various countries. In the foreign exchange market, the Japanese yen weakened against other major currencies.