Market Summary - March 4, 2026
Overview
Asian markets are experiencing a decline for the third consecutive session, primarily due to escalating tensions between the US, Israel, and Iran. Key indices such as Japan’s JP225 and Australia’s AU200cash have shown significant losses, while the Korean Kospi index has seen a notable drop despite a year-to-date increase.
Market Performance
Oil Prices: OIL.WTI is trading at $76.25 per barrel, up 2%, while Brent crude is at $83.50. The rise in prices follows recent attacks near the Strait of Hormuz, which have disrupted tanker traffic.
Gold and Silver: Precious metals are rebounding, with gold up 1.20% to $5,120 per ounce and silver gaining 3.20% to $83.30 per ounce.
Forex Market
The forex market is mixed today. The Australian dollar (AUD) is among the weakest currencies, while the New Zealand dollar (NZD) and Swiss franc (CHF) are performing better.
Economic Indicators
In China, official PMI indicators remain in contraction territory, with the composite index at 49.5, indicating ongoing economic weakness. However, the unofficial Caixin PMI has risen to 52.1, the highest since the pandemic, driven by strong growth in new orders and exports. This conflicting data complicates the assessment of China's recovery trajectory.
Japan's Economic Outlook
Japanese authorities have reiterated their readiness to intervene in the forex market. Despite the geopolitical tensions, the yen has not acted as a safe haven due to rising oil prices affecting Japan's trade balance.
Australia's Economic Growth
Australia's GDP has increased by 0.8% quarter-on-quarter and 2.6% year-on-year, surpassing expectations. This growth indicates improved momentum compared to mid-2024 lows, although household consumption remains cautious.
Breaking News
ADP Labor Market Report: A stronger-than-expected ADP report has failed to support the US dollar.
Upcoming Economic Events
Investors are looking forward to the upcoming Eurozone CPI and speeches from central bankers, which may provide further insights into the economic landscape.