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Latest information on Tokyo and Shanghai transactions, latest analyst comments
Asian markets were mostly quiet on Tuesday after posting record gains last week. Traders are eyeing the release of U.S. economic data this week, which could give them a better idea of when the Federal Reserve will start cutting interest rates.
Last week’s rally, with Tokyo’s benchmark index closing at a new record high, was supported by solid earnings from Nvidia, the American semiconductor giant that is a leading figure in artificial intelligence.
But U.S. markets fell on Monday and Asian stocks started the week on a “more cautious note,” Stephen Innes, managing partner at SPI Asset Management, said in a note.
“This subdued tone suggests that investor sentiment has softened following the recent technology-driven buying spree,” he said.
Investors are focused on Thursday’s release of the U.S. Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, as well as comments from multiple Fed officials on Wednesday and Friday, which Mr. Innes said may indicate the central bank’s It said it could provide insight on interest rates. Cut the outlook.
As for when the Fed will start cutting rates, as inflation data has picked up and policymakers have indicated they need to see more signs that rates are moving toward their 2.0% target, Forecasts are gradually moving to the second half of the year.
“Economic data will come back to center stage,” Chris Larkin of Morgan Stanley’s E*Trade told Bloomberg.
“Following better-than-expected (Consumer Price Index) and (Producer Price Index) data earlier this month, there are concerns about the threat of re-inflation and how it will affect the timing of Fed rate cuts. “More people may turn to PCE for insights.” ”
According to Iwai Cosmo Securities, in the Asian market, the Tokyo market gradually rose on Tuesday, supported by buying due to the weaker yen and the rise in U.S. chip-related stocks, but profit-taking held back the rise.
Iwai Cosmo added that steel makers and banks were winners in the Tokyo market, while semiconductor-related stocks fell following recent gains.
New government data on Tuesday showed Japan’s consumer inflation rate slowed for the third consecutive month to 2.0% in January.
Innes said the better-than-expected numbers had increased speculation that the Bank of Japan “could raise rates as early as next month, but April remains the likely date.”
“General theory suggests that if inflation is above target, it may be easier for the Bank of Japan to proceed with policy normalization.”
Unlike other major central banks, which have raised interest rates to curb inflation, the Bank of Japan has stuck to its ultra-easy policy, putting pressure on the yen.
Shanghai stocks ended higher on the back of gains in tech stocks, but Hong Kong and Sydney also rose.
Seoul, Taipei, Singapore, Jakarta, Bangkok, Manila, and Wellington all experienced declines.
Following the PCE data, investors will focus on China’s manufacturing data to be released on Friday.
Tokyo – Nikkei Stock Average: 39,239.52 (closing price), up 0.01%
Hong Kong Hang Seng Index: 16,661.56, up 0.2%
Shanghai – Overall: up 1.3% to 3,015.48 (close price)
EUR/USD: up to $1.0856 from $1.0853 on Monday
Dollar/JPY: fell from 150.70 yen to 150.46 yen
GBP/USD: increased from $1.2684 to $1.2685
EUR/GBP: up from 85.54p to 85.58p
Brent crude: up 0.2% to $82.71 per barrel
West Texas Intermediate: up 0.2% to $77.75 per barrel
New York – Dow: down 0.2%, 39,069.23 points (close price)
London – FTSE 100: down 0.3% to 7,684.30 (close)
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