Asian markets struggle to fare ahead of US inflation data
Investors tread cautiously in early Asian trade on Tuesday as they waited for US inflation data that could play a key role in determining when the Federal Reserve will begin to ease its monetary policy supportive of the market. The first gain of the S&P 500 and the Dow Jones on Wall Street after a five-day losing streak was not enough to spur a large advance in Asia, although Tokyo was on track to record its best result in more than 30. years in the hope of a new stimulus. Experts are also watching China after authorities tightened their grip on the tech sector amid a broad regulatory crackdown on private companies. But the main event this week is the release of U.S. consumer price data later Tuesday, which comes days after figures showed costs paid by companies on exiting the U.S. Factory had grown last month at a record rate due to a surge in demand as well as supply and labor shortages. This report put pressure on the Fed to start reducing its ultra-accommodative monetary policy as early as November. The consumer price reading is expected to exceed five percent, with analysts warning that a reading well above could force the central bank’s hand to keep inflation from spiraling out of control. Edward Moya of OANDA said the uncertainty over the reading will keep traders on the sidelines for now. “Investors don’t want to have massive positions ahead of inflation data as risks are on the rise as Covid inflation continues to hamper supply chains,” he wrote in a comment. “If inflation is higher than expected, taper expectations could change from December to November.” Hong Kong, Shanghai, Sydney, Wellington and Taipei all fell, but Tokyo, Singapore, Seoul, Manila and Jakarta rose. Confidence has also been shaken by fears of another coronavirus outbreak in China, with dozens of positive cases in Fujian province forcing authorities to conduct mass tests and shut down public transport in one county. The news led to say that leaders may reimpose strict lockdown measures to prevent the spread of the disease, a move that dealt a blow to the Chinese economy when another outbreak occurred earlier this year. “Another round of lockdown restrictions due to China’s elimination strategy threatens to further weaken momentum after surprisingly soft” in recent services and manufacturing data, National’s Tapas Strickland said. Australia Bank. In Washington, House Democrats on Monday unveiled plans for sweeping tax reform, including rescinding Trump-era cuts and raising rates for the rich and corporations as they seek to raise nearly $ 3 trillion to help subsidize President Joe Biden’s multibillion-dollar expansion of safety net and other public investments.
Key figures around 02:30 GMT
Tokyo – Nikkei 225: UP 0.4% to 30,562.42 (pause) Hong Kong – Hang Seng Index: DOWN 0.2% to 25,764.57 Shanghai – Composite: DOWN 0.2% to 3,706.54 Dollar / yen: UP at 110.05 yen vs. 110.01 yen at 2040 GMT Euro / dollar: UP $ 1.1817 vs. $ 1.1815 Pound / dollar: UP $ 1.3847 vs. $ 1.3839 Euro / pound: DOWN to 85.32 pence vs. 85.34 pence West Texas Intermediate: up 0.5% to $ 70.81 per barrel North Sea crude Brent: up 0.4% to $ 73.83 per barrel New York – Dow: UP 0.8% at 34,869.63 (close) London – FTSE 100: UP 0.6% at 7,068.43 (close)
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