Daily Brief - 23 Jan 2024

India tops Hong Kong as world’s fourth largest stock market

India's stock market has just zoomed past Hong Kong's, making it the world's fourth largest. Thanks to its growing economy and investor-friendly policies, India's market value hit a whopping $4.33 trillion. While India's stocks are flying high, Hong Kong's market is struggling, affected by China's economic challenges and political issues. Big global investors are now turning their eyes towards India, attracted by its stable politics and fast growth. Even though some experts think Chinese stocks might bounce back, for now, India is where the investment action is!

BOJ keeps rate hike plans under wraps aiming for inflation goal

The Bank of Japan (BOJ) is keeping everyone guessing about when they'll raise interest rates. They've decided to stick with their current negative rate but seem more hopeful about reaching their inflation target. Despite lowering their inflation forecast for the next fiscal year, they're still on track to exceed their 2% target. The market reacted with some confusion, as the yen's value wobbled a bit after the announcement. However, the BOJ is staying careful, especially considering recent events like an earthquake and a political scandal. Economists think a rate hike might happen around April, but nothing's certain yet.

China’s economic wobbles might leave Asian emerging markets lonely

Moody's has raised a flag about some Asian emerging markets (EMs) feeling a bit left out as China slows its economic activities. These neighboring countries have been relying on China's buying power for income, but now they're facing a tough time filling this gap. The situation is tricky because foreign lenders are cautious about lending in less stable currencies. At the same time, the US remains a powerhouse in global markets, with its tech stocks drawing investors in. Despite high hopes for EMs, China's index hasn't been as fruitful as expected, especially compared to the US's impressive market performance.