Asian Stock Market: Trades flat amid Fed’s interest rate buzz, USD Index recovers, oil consolidates
|-
Asian stocks are trading almost flat as investors await US PCE price index data for further guidance.
-
Japanese stocks have failed to display a power-pack action despite the Tokyo’s inflation met estimates.
-
S&P500 futures have surrendered one-third of gains recorded on Thursday
Markets in the Asian domain are displaying a lackluster perfromance as investors are awaiting fresh development for Federal Reserve (Fed)’s interest rate discussions for further action. S&P500 futures have surrendered one-third of its gains recorded in Thursday’s session as investors have turned anxious ahead of the release of the United States Personal Consumption Expenditure (PCE) Price Index data, which is restricting the upside in the Asian equities. Meanwhile, the downside is being supported by upbeat US Gross Domestic Product (GDP) and Durable Goods Orders data.
At the press time, Japan’s Nikkei225 trades almost flat, Hang Seng eases 0.14%, Nifty50 surrenders 0.54%, KOSPI jumped almost 1%. Meanwhile, Chinese markets are closed on account of Lunar New Year festival.
The US Dollar Index (DXY) has recovered firmly after dropping to near 101.30 in the Asian session. Investors preferred to hide themselves behind safe-haven assets as the release of the US PCE Price Index is expected to trigger sheer volatility in global market. Talking about the monetary policy by the Fed next week, Fed chair Jerome Powell is expected to hike interest rates by 25 basis points (bps) to 4.50-4.75%.
Japanese stocks have failed to display a power-pack action despite the Tokyo’s inflation met estimates. The headline Consumer Price Index (CPI) landed at 4.4% in line with the projections. The core CPI that excludes oil and food prices released at 3.0% higher than the estimates of 2.8%. Meanwhile, Japanese Prime Minister (PM) Fumio Kishida said in an appearance on Friday that he acknowledged the Bank of Japan’s (BoJ) December policy decision was an operational tweak to enhance and sustain monetary easing effects smoothly.
On the oil front, oil price is deomnstrating a lackluster performance as investors might take positions at full capacity after geeting outcome of the OPEC+ panel meeting. Reuters recently reported that the panel is unlikely to alter production levels, given that crude prices recovered sharply in early 2023, and that demand is forecast to surge as the Chinese economy recovers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.