Asian stocks rose, with the regional gauge rebounding from a five-week low, as data showing an improvement in U.S. factory output boosted optimism in the world's biggest economy.
The MSCI Asia Pacific Index climbed 0.4 percent to 134.65 as of 9:02 a.m. in Tokyo. The gauge slumped 3.5 percent last week as data on Chinese industrial production and retail sales disappointed investors. Factory output in the U.S. rose in February by the most in six months, indicating the industry started to recover from severe winter weather, according to a report by the Federal Reserve, which is starting a two-day monetary policy meeting today.
"We've seen an improvement in industrial production after the cold weather and that's positive," Keith Poore, who helps manage $131 billion as Wellington-based head of investment strategy at AMP Capital Investors Ltd., said by phone. "Tapering doesn't seem to be too much of an issue for investors, who are more concerned on when the Fed will start raising interest rates. We don't expect an interest-rate hike this year."
The Fed Open Market Committee will further scale back their bond-buying program at the meeting, reducing purchases for the third time by $10 billion to $55 billion per month, according to 54 economists surveyed by Bloomberg March 14-17.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.