Asian shares stalled near seven-month highs as investors awaited inflation data from the US, Japan, and Europe, which will impact future rate moves. The Federal Reserve's preferred inflation measure is due on Thursday, with forecasts indicating a potential rise. Markets have adjusted expectations for a first Fed easing, and Wall Street reached new highs despite a hawkish shift. Inflation figures from Japan and the EU are also anticipated, while the Reserve Bank of New Zealand holds its first policy meeting. Treasury yields hit a three-month high last week, and currency markets have been affected.
Asian share markets are cautious as investors await U.S. and Chinese inflation data and the start of corporate earnings season, with hopes for strong results to justify high stock valuations. Geopolitical tensions and disruptions in the Red Sea are also impacting oil prices and shipping costs. The U.S. congressional leaders have agreed on a $1.6 trillion spending deal to avert a partial government shutdown. The dollar's recent gains are affecting currency markets, while oil prices fluctuate amid supply concerns.
Japanese shares reach a three-decade high due to strong earnings and offshore demand, while the yuan strengthens against the dollar following a firm fix by China's central bank. Financial shares lead the gains as investors anticipate an eventual end to negative rates, and auto makers benefit from a weak yen and high exports. Meanwhile, Asian stock markets outside Japan also rise, and the Black Friday sales will test the U.S. consumer-driven economy. The Federal Reserve's minutes, European PMIs, and Nvidia's quarterly results are anticipated this week.
Asian shares continued to rally for a fourth consecutive session as markets priced in earlier rate cuts in the US and Europe. Battered bond markets also saw a recovery as a benign US payrolls report and upbeat productivity numbers suggested a cooling labor market, reducing the need for further rate increases from the Federal Reserve. Futures markets indicate a high probability of rate cuts by the Fed, European Central Bank, and Bank of England. Central bank speakers, including Fed Chair Jerome Powell, will provide further insight into this dovish outlook. Meanwhile, Australia's central bank is expected to resume raising rates, and the Bank of Japan is gradually tightening policy. Lower borrowing costs boosted MSCI's Asia-Pacific shares, while Treasury yields and the dollar retreated. Oil prices edged higher, and Israel rejected calls for a ceasefire in Gaza.
Asian stock markets were mixed as concerns over Israel's push into Gaza and the upcoming central bank meetings in the US, UK, and Japan weighed on investor sentiment. The earnings season continues with Apple, Airbnb, McDonald's, Moderna, and Eli Lilly & Co among the companies reporting this week. The S&P 500 retreated into correction territory, and there is uncertainty about the Bank of Japan's yield curve control policy. The rise in US Treasury yields has convinced analysts that the Federal Reserve will keep rates unchanged. Job figures are expected to show solid growth in US payrolls, while the Bank of England is expected to stay on hold. Oil prices eased despite the Middle East tensions.
Asian stock markets struggled as investors awaited China data that is expected to highlight the need for stimulus, while rising Treasury yields pushed the dollar to a 2023 high against the yen. Chinese shares declined due to disappointing economic news and concerns about debt-laden property developers. Geopolitical tensions also added to market worries. Meanwhile, U.S. retail sales data is anticipated to show a pickup in spending, challenging the market's expectation of rate cuts by the Federal Reserve. The rise in bond yields lifted the dollar, while gold prices fell. Oil prices, however, continued to rise due to tight supply and strong demand forecasts.
Asian shares slipped as Chinese economic data showed mixed results, with GDP growth beating expectations but retail sales missing forecasts. The lack of major fiscal stimulus from Beijing has increased market impatience. Chinese blue chips were down 1.0%, while the yuan was slightly lower. Asian-Pacific shares outside Japan fell 0.3%. Tesla and several banks are among the companies reporting earnings this week. US retail sales data is expected to show a rise of 0.3% ex-autos. Markets still imply a high chance of a Fed rate hike this month, but have priced in aggressive policy easing for next year. The dollar was softer against the yen and euro, while gold and oil prices were supported.
Asian stock markets extended their rally on Monday, buoyed by optimism that the Federal Reserve would pause its rate hikes this month after a mixed US jobs report. Oil prices rose after Saudi Arabia pledged big output cuts, with Brent oil up 1% to $76.89 a barrel. The Bank of Canada will meet on Wednesday, with a majority of economists polled by Reuters expecting the BOC to keep interest rates on hold at 4.5% for the rest of the year although the risk of one more rate hike remains high.
Asian stock markets and Wall Street futures rose after a weekend deal by US President Joe Biden and House Speaker Kevin McCarthy to suspend the government's debt ceiling provided relief for investors. However, China worries capped sentiment, with falls in Chinese and Hong Kong shares offsetting gains seen elsewhere. The deal now has to clear a narrowly divided Congress before the United States runs out of money to pay its debts in early June.
Most Asian stock markets were subdued on Friday due to concerns of a global slowdown after soft economic data from the US and China. The dollar held onto its gains from safe-haven flows. Japanese shares outperformed, with the Nikkei climbing 0.9% to its highest level since November 2021. China's bluechips fell 1.1%, and Hong Kong stocks were down 0.7% on the day. Banking fears lingered with PacWest down 23%. The US Federal Deposit Insurance Corporation said big lenders would bear the cost of replenishing its deposit insurance fund caused by recent bank failures.
Asian shares rose as Singapore paused its policy tightening and the US Federal Reserve was seen nearing a pause after a soft producer price report. The Monetary Authority of Singapore (MAS) joined central banks in Canada, Australia and India in putting hikes on hold. The euro led the currency pack as the European Central Bank stays stubbornly hawkish. Investors are now bracing for earnings from Citigroup, Wells Fargo and JPMorgan Chase & Co which could test the bullish mood given recent stress in the sector.
