(Bloomberg) — Asian stock markets are poised to rise after the U.S. Federal Reserve reiterated that it is in no rush to cut interest rates and will wait for more evidence that inflation is under control.
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Nikkei 225 index futures contracts rose while trading remained suspended in Australia and Hong Kong due to public holidays.
Chairman Jerome Powell said the new inflation figures released on Friday were “very much in line with our expectations” and said he would cut interest rates until officials were confident inflation was on track for 2%. added that it was not appropriate. Investors are currently betting that the U.S. central bank will make its first interest rate cut in June.
“Right now the Fed is relying heavily on data,” said Matthew Ruzzetti, chief U.S. economist at Deutsche Bank. “Until we get some confirmation or a different perspective on what the data is going to look like, it’s a little hard to tell exactly what the situation is going to end up being from a Fed policy standpoint.”
China’s official manufacturing purchasing managers index expanded in March for the first time since September, China’s National Bureau of Statistics said in a statement on Sunday. The figures suggest the world’s second-largest economy is maintaining traction after a solid start to the year, prompting policymakers to assess the effectiveness of stimulus measures so far. Could give more time for.
China has set a target to increase its gross domestic product (GDP) by about 5% this year, but many economists believe this will be difficult to achieve given the long-term weakness in the real estate sector and persistent deflationary pressures.
“The industrial sector appears resilient, supported by strong exports,” said Zhang Chiwei, chief economist at Pinpoint Asset Management. “Economic momentum could improve if fiscal spending increases and exports remain strong.”
Investors will focus on US Treasuries as trading resumes during Asian hours on Monday. The dollar was mixed, trading in a narrow range against the Group of Ten (G10) economies, with indicators of dollar strength ending the quarter on a high.
Wall Street traders pushed the S&P 500 index to its 22nd record of the year late last week. The $4 trillion rise in value of U.S. stocks in just three months has astounded prognosticators, while many strategists are busy updating their 2024 targets.
Elsewhere, Bitcoin traded above $70,000. The largest digital currency has rallied almost 70% this year on strong demand for U.S. exchange-traded funds that hold the tokens.
This week’s main events:
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China Caixin Manufacturing PMI, Monday
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Indonesia CPI, Manufacturing PMI, Monday
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Japan Tankan business sentiment, manufacturing PMI, Monday
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Macau casino revenue, Monday
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Pakistan Trade, CPI, Monday
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Singapore house prices, Monday
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Korean trade, manufacturing PMI, Monday
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Taiwan Manufacturing PMI, Monday
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Vietnam Manufacturing PMI, Monday
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US construction spending, ISM manufacturing, Monday
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Bank of Canada releases survey on economic outlook and consumer expectations on Monday
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Eurozone S&P Global Manufacturing PMI, Tuesday
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France S&P Global Manufacturing PMI, Tuesday
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Germany S&P Global / BME Manufacturing PMI, CPI, Tuesday
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India HSBC/S&P Global Manufacturing PMI, Tuesday
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Mexico’s international reserves, Tuesday
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Korean CPI, Tuesday
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Spain unemployment rate, Tuesday
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UK S&P Global/CIPS Manufacturing PMI, Tuesday
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US factory orders, light vehicle sales, JOLTS job openings, Tuesday
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Brazilian industrial production Wednesday
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China Caixin releases PMI on Wednesday
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Eurozone CPI, unemployment rate, Wednesday
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Japanese services PMI, Wednesday
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Hong Kong retail sales Wednesday
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US ISM Service, Wednesday
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Eurozone S&P Global Services PMI, PPI, Thursday
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India releases PMI on Thursday
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U.S. new jobless claims, trade, Thursday
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Eurozone retail sales Friday
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French industrial production, Friday
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Order from German factory, Friday
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Hong Kong PMI, Friday
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India interest rate decision Friday
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Japanese household expenditure, Friday
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Philippine Consumer Price Index, Friday
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Russian GDP, Friday
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Singapore retail sales Friday
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South Korea’s current account balance, Friday
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U.S. unemployment rate, nonfarm payrolls, Friday
The main movements in the market are:
stock
currency
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Bloomberg Dollar Spot Index rose 0.1%
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The euro was almost unchanged at $1.0794.
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The Japanese yen remained almost unchanged at 151.30 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2564 yuan to the dollar.
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The Australian dollar was almost unchanged at US$0.6519.
cryptocurrency
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Bitcoin is little changed at $70,878.54
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Ether rose 0.1% to $3,637.5
bond
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10-year government bond yield unchanged at 4.20%
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Japan’s 10-year bond yield rose 2 basis points to 0.725%.
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Australian 10-year bond yield unchanged at 3.96%
merchandise
This article was produced in partnership with Bloomberg Automation.
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