Adversitement
Asian Stocks Steady Ahead of U.S. Inflation Data; BOJ Policy Speculation Rises
Published On : 2024-03-12T12:25:28+0530 [ IST ] |
Author : Mayur_Tembhare
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- stocks" target="_blank">Asian stocks showed resilience ahead of the U.S. inflation report, with the MSCI's broadest index of Asia-Pacific shares outside Japan inching up by 0.20%.
- China stocks saw gains, particularly in Hong Kong's Hang Seng Index, which rose by 0.75%, led by tech stocks. The blue-chip CSI300 index also saw a modest increase of 0.13%.
- The Nikkei in Japan extended its decline, dropping by 0.84%, amid speculation surrounding the Bank of Japan's monetary policy. The BOJ refrained from purchasing Japanese exchange-traded funds on Monday, fueling expectations of a policy shift.
- There is growing speculation among BOJ policymakers about ending negative interest rates this month, driven by expectations of substantial pay hikes in annual wage negotiations. The BOJ is scheduled to meet next week.
- The yen strengthened against the dollar amid these speculations, with some analysts suggesting a 50% chance of the BOJ shifting rates to zero at its upcoming meeting.
- Investor focus is on the U.S. inflation data, with expectations for a monthly increase of 0.4% and an annual increase of 3.1%. Core inflation is anticipated to rise by 0.3%.
- Market expectations suggest the Fed will not cut rates at its next meeting, but there is a high probability of a rate cut in June. Economists predict potential rate cuts in June, September, and December.
- Gold prices remained near their record high, while U.S. crude and Brent saw slight increases.
Analysis: The stability in Asian markets reflects investor caution ahead of key economic data releases and central bank meetings. Speculation surrounding the Bank of Japan's potential policy changes and the U.S. inflation report are driving market sentiment. Traders are closely monitoring these developments to assess their impact on monetary policy and economic outlooks globally.
Tags : speculation , central bank , Asian stocks , U.S. inflation data , monetary policy , Bank of Japan , Hang Seng Index , market sentiment , crude oil , Nikkei , yen , China stocks , gold prices , MSCI , economic data , Federal Reserve , Interest Rates ,
Summary : stocks" target="_blank">Asian stocks remained relatively stable on Tuesday as investors awaited the influential U.S. inflation report. Japanese shares experienced a decline while the yen strengthened amid growing expectations that the Bank of Japan (BOJ) might consider scaling back its ultra-easy monetary policy. Gold prices hovered just below their record peak, and the dollar remained steady as traders awaited the U.S. consumer price index report to gauge the Federal Reserve's potential actions.
Adversitement