Asian stock market gains led by South Korea

Stock markets in the Asia-Pacific region are moving higher, against the backdrop of an interest rate increase by the Central Bank of Australia as expected.

In particular, the Central Bank of Australia decided to increase interest rates by 50 basis points to 1.35%. The Australian dollar fell after the announcement of the RBA decision to $0.6857. The S&P/ASX 200 is up 0.41%.

Meanwhile, economic data released on Tuesday in South Korea showed that the consumer price index rose 6% in June compared to the same month last year, a slightly higher-than-expected increase of 5.9% and the largest since November 1998, according to Reuters.

“Price pressures and the Federal Reserve’s more hawkish monetary policy, at a time when South Korea’s balance of payments is under pressure, strengthen the case for a 50 basis point rate hike at its meeting [Τράπεζας της Κορέας] on July 13,” noted ANZ economist Krystal Tan. Against this backdrop, Kospi in South Korea added 1.13% and Kosdaq recorded a “jump” of 2.96%. In individual stocks, SK Hynix is ​​up by 3.25% and Naver by 3.19%.

In Japan, services sector activity expanded at the fastest pace since October 2013, to 54 points in June from 52.6 in May. The Nikkei 225 adds 0.67%, while the Topix gains 0.2%.

On the mainland China the indices moved against the positive trend. The Shanghai Composite fell 0.19% and Shenzhen slipped 0.7%.

In the Hong Kong the Hang Seng is up 0.57%.

MSCI’s broadest index of Asia-Pacific shares outside Japan adds 0.33%.

US Treasury Secretary Janet Yellen outlined Washington’s concerns about Chinese trade practices that the Joe Biden administration has called “abusive” and “against market rules” during a video call Monday with Chinese Vice Premier Liu Heh, according to a press release from her services.

The discussion is part of the US effort to “maintain open channels of communication”, according to the laconic text, which notes, however, that it was “honest and substantial”.