Asia-Pacific Stocks React to Hot CPI Report Asia-Pacific Stocks React to Hot CPI Report

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By Ronald Tech

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Japan (NKY:IND) -0.69%. The Japanese yen has depreciated to its lowest levels in three months, falling past 150 per dollar. This comes as a result of a surprisingly hot US inflation reading lowering the odds for early interest rate cuts from the Federal Reserve this year.

China (SHCOMP) markets are closed this week for the Spring Festival, affecting key trade partner China.

Hong Kong (HSI) +0.89%. The market has managed to reverse its losses from earlier in the session as it returned from the Lunar New Year holidays.

India (SENSEX) -0.34%. The country’s wholesale prices rose by 0.27% year-on-year in January 2023, marking the third consecutive period of wholesale inflation. However, this is a slowdown from the 0.73% in December and is below market estimates of 0.53%.

Australia (AS51) -0.74%.

In the US on Tuesday, all three major indexes ended lower as hotter-than-expected US consumer inflation data reinforced the view that the Federal Reserve will start cutting interest rates later than the market expects.

US stock futures steadied on Wednesday after the major averages declined sharply in the previous session, as stronger-than-expected US inflation data further dented sentiment around Federal Reserve interest rate cuts: Dow +0.12%; S&P 500 +0.22%; Nasdaq +0.38%.

Investors are now looking ahead to Chicago Fed President Austan Goolsbee’s comments later on Wednesday for further guidance.

Traders are also looking ahead to US retail sales figures on Thursday and producer inflation data on Friday, as well as remarks from at least seven Fed officials this week.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

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Insights into Asia’s Market Movement