HomeBusinessAsian stocks rise as US CPI supports Fed easing: Markets join in

Asian stocks rise as US CPI supports Fed easing: Markets join in

(Bloomberg) — Asian shares drifted higher Thursday after U.S. inflation data supported the case for another Federal Reserve rate cut next month.

Most read from Bloomberg

Stocks in Japan and Australia rose while Hong Kong futures fell after a gauge for US-listed Chinese companies fell on Wednesday. US stocks were little changed as the post-election rally appeared to stall. The S&P 500 was flat and the tech-heavy Nasdaq 100 fell 0.2%.

US consumer price data was broadly in line with expectations, although three-month annualized core interest rates rose. Overall, the data was supportive of a possible Fed rate cut in mid-December, with swap traders raising the probability to about 80%, up from about 56% earlier Wednesday.

The nuanced figures caused short-term bond yields to fall, with the two-year yield falling by five basis points to 4.29%. The 10-year yield rose two basis points to the highest level since July, while the 30-year yield rose seven basis points to the highest level since May. A gauge for the greenback rose on Wednesday as the greenback resumed its strengthening against major currencies.

“A reduction for December is still planned,” says Seema Shah of Principal Asset Management. “A higher-than-expected inflation rate could have convinced the Fed to hold firm at its next meeting.”

The yen stabilized early Thursday after falling 0.6% Wednesday, its third session of weakening, reaching 155 per dollar for the first time since July. The decline has left the yen near levels at which Japanese authorities last intervened to support the currency, with the country’s top currency official warning against the one-sided, sudden moves.

See also  Ferrari shares fall as deliveries to China hit a roadblock

China, which recently unveiled plans to shore up its ailing economy, received more than $40 billion in bids for its first dollar bond issuance since 2021.

The Hong Kong stock exchange will keep its markets open despite signs of severe weather.

Elsewhere, Bitcoin hit another record high, climbing above $93,000 for the first time, with traders exuberant over newly elected President Donald Trump’s rhetorical support for crypto. The cryptocurrency was trading around $90,000 in early Asian trading.

In Asia, the dataset for publication includes Australian unemployment, South Korean money supply and Thai consumer confidence.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments