Asian stocks fell Monday, dragged lower by Japanese shares as mounting speculation the nation’s central bank will raise interest rates boosted the yen. The Topix index of Japanese equities slid 3%, the biggest drop since March last year. Chip stocks within the benchmark slumped in a move that echoed pressure on AI-related firms seen on Friday in the US, when Nvidia Corp. slipped 5.6%. Shares in Australia and South Korea also declined, sending a gauge of regional stocks down after three days of advances. In Japan, economic growth expanded in the fourth quarter, supporting expectations that the Bank of Japan will raise interest rates for the first time since 2007 as soon as this month. Declines for Japanese shares partly reflected the stronger yen, which typically acts as a headwind for the country’s equities. The yen extending last week’s 2% rally against the dollar — its best weekly gain since July. The currency looks poised to test the 145 per dollar mark and a break of that level may spur a quick move toward 140, according to Amir Anvarzadeh, a strategist at Asymmetric Advisors Pte Ltd. Investors are now on the watch for whether the BOJ will buy exchange-traded funds after the Topix fell more than 2%. The last time the central bank purchased ETFs was in October, when the index dropped by a similar amount the morning trading session. Chinese equities ran against the gloom to trade higher, with solar shares extending their recent gains amid speculation the government will relax caps on renewable installation, improving the outlook for the sector. Shares also rose on report that Chinese regulators met financial institutions to ask large banks to enhance financing support for the property developer.
US futures declined following falls on Wall Street at the end of last week, where both the S&P 500 and the Nasdaq 100 slipped. Treasuries traded steady. Tuesday’s US consumer price index figures will dominate the economic data reports this week. The core prices gauge is seen rising 0.3% in February from a month earlier, and 3.7% on a year-over-year basis — which would be the smallest annual rise since April 2021. Further moderation in US prices would support the disinflation narrative that broadly remains in tact, despite a pullback in the number of Federal Reserve rate cuts expected this year. Swaps pricing shows three cuts are anticipated in 2024, down from six at the start of the year. In commodities, gold rose toward a record on Fed outlook, while oil held a loss ahead of reports from OPEC and the IEA this week that may provide clues on the demand outlook. An ind x of the dollar was weaker after falling 1% last week — the worst weekly showing since December.
Nikkei -2.19% Hang Seng +1.26% CSI +1.02% Shanghai +0.53% Shenzen +1.84%
Eur$ 1.0940 CNH 7.1977 CNY 7.1907 JPY 147.06 GBP 1.2848 CHF 0.8779 RUB 91.0719 TRY 32.0036 WTI$ 77.52 Gold 2,178 BTC 68,540 -1.1% ETH 3,851
S&P -0.09% Nasdaq -0.15% EuroStoxx -0.48% FTSE -0.34% Dax -0.40% SMI +0.02%
Macro :
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Keep an eye on :
Keep an eye on :
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