Asian Markets Upbeat, Wall Street Mixed; Positive Global Cues Point to Firm Start for Sensex, Nifty

Mumbai, July 3: Indian benchmark indices are likely to open on a positive note on Friday, tracking gains across Asian equities after upbeat economic data from the region and easing concerns over U.S. monetary tightening lifted investor sentiment. 

Asian shares rebounded after a weak previous session, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1%. Japan’s Nikkei 225 gained 0.7%, while South Korea’s Kospi surged 3%, aided by a recovery in chip stocks. Fresh purchasing managers’ index (PMI) data also boosted confidence, with Japan’s services sector returning to expansion and China’s export demand recording its strongest growth in 20 months.  

The improved risk appetite followed U.S. labour market data that showed hiring slowed sharply in June, reinforcing expectations that the Federal Reserve may refrain from raising interest rates in the near term. Futures markets are increasingly pricing in a pause through September.  

Wall Street ends mixed 

Overnight, U.S. markets delivered a mixed performance. The Dow Jones Industrial Average closed at a record high, supported by gains in economically sensitive sectors, while the S&P 500 finished little changed. The tech-heavy Nasdaq slipped 0.8% as weakness in semiconductor stocks weighed on the index.  

Also Read: Dow Jones Hits Record High at 52,900, Nasdaq Drops 0.8% as Chip Stocks Extend Sell-Off on Weak Jobs Data 

Earlier in the session, investors had remained cautious ahead of the closely watched U.S. payrolls report, while continued volatility in AI-linked semiconductor shares kept technology stocks under pressure.  

European markets hit fresh record 

European shares closed at a fresh record high, with strength in industrial, healthcare and financial stocks offsetting weakness in AI-related chipmakers. The STOXX Europe 600 ended at an all-time closing high as investors took heart from U.S. payrolls data and weighed expectations of a less aggressive monetary policy environment. 

Oil edges higher 

Oil prices inched up ahead of the long U.S. Independence Day weekend, although gains remained limited as markets continued to monitor progress in U.S.-Iran peace negotiations. 

Brent crude rose to around $72.1 a barrel, while U.S. West Texas Intermediate traded near $68.9. The reopening of the Strait of Hormuz and increased crude exports from Gulf producers have eased supply concerns, preventing a sharper rise in prices despite lingering geopolitical risks.  

Indian markets likely to open higher 

The combination of strong gains across Asian markets, record highs on the Dow, stable crude oil prices and expectations of a less aggressive Federal Reserve provides supportive global cues for Indian equities. However, investors are likely to remain selective amid continued volatility in global technology stocks. 

Source

•  Exchanges