^N225Nikkei 225

Divergent performance of global indices between tech momentum and economic data pressures

Global index markets witnessed a notable state of divergence at the end of the week's trading, as the KOSPI index led the gains with 2.42%, supported by strong performance in the technology sector. The Nasdaq and S&P 500 indices also recorded solid gains despite volatile US economic data. Non-farm payroll data showed a surprise contraction with a loss of 23,000 jobs; however, the decline in the actual unemployment rate to 4.1% compared to expectations helped calm acute recession fears, prompting investors to focus on growth opportunities in the artificial intelligence sector despite challenges related to high borrowing costs to fund these massive investments. In contrast, Asian and Mexican markets faced clear selling pressure, with the Hang Seng index falling by 1.10%, impacted by Chinese inflation data that came in below expectations at 0.5%, signaling continued weak domestic demand in the world's second-largest economy. Australian indices also recorded declines approaching 1% in conjunction with lower-than-expected German and Chinese trade surpluses. On the positive side, the Swiss economy stood out with strong growth of 1.5% in the second quarter, but the overall picture for indices remains hostage to the balance between the ambitions of the technology sector and macroeconomic data showing a slowdown in employment and international trade sectors.