Asian stocks fluctuated as investors weighed hawkish comments from Federal Reserve officials and looked toward the release of US inflation data on Thursday for clarity on the trajectory for interest rates. Stock gauges in Australia and Southeast Asia fell, while those in mainland China fluctuated and Japan’s Topix Index advanced after reopening following a public holiday. Contracts on the S&P 500 edged lower after the index failed to stay above the 3,900 level, erasing an advance that reached almost 1.5% Monday. Traders hoping for a quick end to aggressive rate hikes as global inflation cools had a reality check on Monday, when San Francisco Fed president Mary Daly said she expects the central bank to raise rates to somewhere over 5%. Her Atlanta counterpart Raphael Bostic said policy makers should hike above 5% by early in the second quarter and then go on hold for “a long time.” That leaves those betting on slower hikes waiting on Thursday’s US inflation report, which will come out almost a week after the latest jobs data showed wage growth has decelerated. The figures will be among the last such readings policy makers will see before their Jan. 31-Feb. 1 gathering. The Bloomberg Dollar Spot Index was little changed. Treasury 10-year yields held at 3.53%. Japan’s 10-year yield was at 0.5%, the ceiling for the Bank of Japan’s yield-curve control policy. Concerns about recessions in the US and Europe this year have been countered by renewed optimism over China. The world’s second-largest economy made a U-turn on strict Covid restrictions in December and swiftly followed up with other market-friendly changes. The Chinese economy is now forecast to expand by 4.8% this year, according to data compiled by Bloomberg. Still, deflationary pressure worsened in the fourth quarter, with price growth likely to be subdued even when the economy rebounds later this year, according to China Beige Book International. US After Hours
OSH +25.8% on guidance, FRO +17.5% after terminating Euronav agreement, ACCD +4.8% and AZZ +3.8% on earnings; BLI -6.4% on guidance, PLNT -5.0% on year-end metrics
Nikkei +0.78% Hang Seng -0.44% CSI +0.11% Shanghai -0.21% Shenzen +0.27%
Eur$ 1.0728 CNH 6.7865 CNY 6.7773 JPY 132.12 GBP 1.2154 CHF 0.9218 RUB 69.6230 TRY 18.7780 WTI$ 74.38 -0.34% BTC 17,204 +0.13% ETH 1,324 +0.42%
S&P -0.19% Nasdaq -0.23% EuroStoxx -0.81% FTSE -0.52% Dax -0.70% SMI -1.16%
Macro :
- UBS Sees Asia M&A Pick Up in Latter 2023 Despite Recession Woes
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- PFE US :
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