Most Asian Markets Gain As 'critical' US Inflation Data Looms
Sumaira FH Published April 09, 2024 | 07:57 PM
Asian stocks mostly rose Tuesday as attention turned to crucial US inflation data that could play a pivotal role in the Federal Reserve's decision-making on interest rates, with investors lowering their expectations for how many cuts it will deliver
Hong Kong, (UrduPoint / Pakistan Point News - 9th Apr, 2024) Asian stocks mostly rose Tuesday as attention turned to crucial US inflation data that could play a pivotal role in the Federal Reserve's decision-making on interest rates, with investors lowering their expectations for how many cuts it will deliver.
With consumer prices picking up in January and February, the jobs market still strong and the economy in rude health, traders have regularly tweaked their forecasts for monetary policy easing this year, and some are even contemplating no cuts before 2025.
Stocks surged in New York on Friday after closely watched March non-farm payroll figures came in way above estimates, with traders focusing on the tepid wage growth.
But a miss to the upside in this week's consumer price index report could send shivers through markets, analysts warn.
"This upcoming release is arguably the most critical economic print of the year," said Stephen Innes at SPI Asset Management.
"Investors eagerly await this report in hopes that it will offer more insights into the Federal Reserve's potential timeline for rate cuts and the frequency of such cuts.
"The big problem hiding in plain sight is that a larger segment of the investment community is even considering the prospect of no rate cuts this year, adding further uncertainty to the market outlook."
Chris Larkin at E*Trade from Morgan Stanley added: "While the Fed was hesitant to read too much into back-to-back months of higher-than-expected inflation data, a third month may lead them to change their tune."
Investors are now expecting about 60 basis points of cuts this year -- suggesting just two reductions -- with a less than 50 percent chance of three, according to Bloomberg News.
However, the Fed's Chicago chief Austan Goolsbee warned that not loosening monetary policy could backfire.
"You've got to pay attention to how long... you want to be that restrictive," he said on Chicago's WBEZ radio station.
"If you're there too long, the unemployment rate is going to start going up," he added.
The European Central Bank's policy meeting Thursday is expected to end with no change, but an improving inflation outlook has ramped up bets it will begin cutting soon.
Wall Street's three main indexes ended a tepid day on a flat note but Asia was largely positive.
Tokyo was boosted by a weaker yen, which is approaching the 152-per-dollar level many think could spark an intervention by Japanese authorities.
Hong Kong, Shanghai, Sydney, Singapore, Mumbai, Bangkok and Taipei were also in positive territory, but Seoul and Wellington slipped.
London rose in the morning but Frankfurt and Paris were lower.
The end of the week also sees the start of the US earnings season, with JPMorgan, Wells Fargo and Citigroup first up.
The results will be closely followed for an idea about the impact of high inflation and interest rates on companies' bottom lines, particularly in light of the strong rally in equities that has been partly based on confidence in future profits.
But JPMorgan chief Jamie Dimon warned Wall Street markets were overvalued and said "persistent inflationary pressures" could see borrowing costs go higher.
- Key figures around 0810 GMT -
Tokyo - Nikkei 225: UP 1.1 percent at 39,773.13 (close)
Hong Kong - Hang Seng Index: UP 0.6 percent at 16,828.07 (close)
Shanghai - Composite: UP 0.1 percent at 3,048.54 (close)
London - FTSE 100: UP 0.1 percent at 7,948.93
Dollar/yen: UP at 151.90 yen from 151.85 yen on Monday
Euro/dollar: DOWN at $1.0852 from $1.0861
Pound/dollar: DOWN at $1.2652 from $1.2656
Euro/pound: DOWN at 85.77 pence from 85.80 pence
West Texas Intermediate: UP 0.5 percent at $86.83 per barrel
Brent North Sea Crude: UP 0.4 percent at $90.77 per barrel
New York - Dow: FLAT at 38,892.80 (close)
Related Topics
Recent Stories
Dubai Police Marks International Workers' Day with 'Talabat' Riders
Sharjah Ruler inaugurates 15th annual Sharjah Children’s Reading Festival
Parineeti Chopra opens up about her decision to marry politician Raghav Chadha
PCB decides to set up training camp for national team ahead of England, Ireland ..
Virat Kohli's sweet birthday wish for Anushka Sharma
Interior Minister commends Pakistan Coast Guards
Pakistan women’s squad announced for England tour
Punjab CM Maryam inaugurates initiative of field hospitals
PM Shehbaz constitutes committee to investigate caretaker govt’s wheat import ..
Women T20I: Pakistan to face West Indies in fourth match tomorrow
Pak-UK 6th Regional Stabilization Conference underway at NDU, Islamabad
World Labor Day being observed today
More Stories From Business
-
SRB tax collection surges 29% to Rs 185.2 billion
12 hours ago -
WSSP, district admin to launch joint operation against water bills defaulters
15 hours ago -
Mega Cotton Seminar held in Bahawalpur
17 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 1 May 2024
19 hours ago -
Today Gold Rate in Pakistan 01 May 2024
19 hours ago -
Petrol prices slashed by Rs 5.45 per liter
1 day ago
-
Govt reduces petrol price by Rs5.45 per litre
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
Planning minister reviews preparations for upcoming 13th JCC meeting, PM Shehbaz’s expected visit ..
1 day ago -
FBR issues Income Tax General Order to enforce return filing
1 day ago -
LCCI delegation visits Business Facilitation Center
1 day ago -
2-day Pak-International Poultry Expo begins
1 day ago