Stocks in Asia faced uncertainty as investors awaited readings on US inflation, seeking clues on the Federal Reserve’s interest-rate trajectory. An Asia Pacific equity gauge showed minimal movement, with gains in South Korea counterbalanced by losses in Hong Kong.
In Japan, the blue-chip Nikkei-225 Stock Average Index experienced fluctuations as traders continued to evaluate the possibility of an interest rate hike by the Bank of Japan, which would mark its first since 2007.
Matt Simpson, a senior market strategist at City Index Inc., noted, “Markets have a close eye on US producer price data later today, as it could be used to confirm or deny this week’s hotter CPI report.” He added that this focus seemed to be dampening volatility more than usual in the Asian session, exacerbated by the absence of significant economic data.
Despite Chinese officials pledging central government funds to stimulate consumer and business spending on replacing old equipment and goods, sentiment remained fragile in Chinese markets. However, shares linked to Asian copper miners saw gains after the metal surged to an 11-month high amid potential capacity cuts at Chinese smelters.
In the US, contracts for equities saw marginal gains following a lackluster session on Wednesday, during which the S&P 500 ended lower and the tech-heavy Nasdaq 100 fell by 0.8%.
The cautious stance of investors in Asia reflects their anticipation of the US inflation data and its implications for future monetary policy decisions by the Federal Reserve. The outcomes of these economic indicators are likely to shape market sentiment and direction in the coming sessions.
