• Equities in Asia-Pacific zone track Wall Street’s losses amid sluggish markets.
  • Strong US inflation, fears of fallout from Russia-Ukraine war and China’s struggle with COVID-19 weigh on sentiment.
  • Inflation expectations eased in Australia, rose in New Zealand, BOJ Opinion Summary favor easy money policies.
  • India CPI, US PPI will be eyed for fresh impulse.

Markets in the Asia-Pacific region remain downbeat as traders struggle to overcome fears of inflation and coronavirus amid a sluggish session during early Thursday.

While portraying the mood, MSCI’s index of Asia-Pacific shares ex-Japan drops 1.4% whereas Japan’s Nikkei 225 print 1.25% intraday loss by the press time.

Worries over inflation bolstered after the US Consumer Price Index (CPI) data crossed softer forecasts for April, published the previous day. That said, the US Consumer Price Index (CPI) rose to 8.3% YoY versus 8.1% expected and 8.5% prior. More importantly, the CPI ex Food & Energy, better known as Core CPI, crossed 6.0% forecasts with 6.2% annual figures, versus 6.5% previous readouts.

Following the data, during early Thursday in Asia, the previously hawkish Federal Reserve Bank of St. Louis James Bullard mentioned that he ''won't emphasize single inflation report too much but inflation is more persistent than many have thought.''

It should be observed that contrasting signals concerning the covid conditions in China and the policymakers’ readiness for more measures to uplift the world’s second-largest economy fail to recall buyers from Beijing. The same weighs on the stocks in Australia and New Zealand. Australia’s Consumer Inflation Expectations dropped more than forecast in May while the Reserve Bank of New Zealand’s (RBNZ) inflation expectations for the second quarter (Q2) rose to 3.28% versus 3.27% prior.

Elsewhere, Indonesia retail sales came out weak for March and drown IDX Composite. On the same line is South Korea’s KOSPI which prints 0.80% intraday loss by the press time as China, South Korea and Japan quote fears from the Ukraine-Russia war.

On a broader front, the US 10-year Treasury yields dropped 1.4 basis points (bps) to 2.92%, around a two-week low by the press time. In doing so, the benchmark bond coupon drops for the fourth consecutive day, bracing for the first negative week in 10. Elsewhere, S&P 500 Futures rise 0.30% intraday gains, in contrast to Wall Street’s losses.

Moving on, India’s Consumer Price Index (CPI) for April will precede weekly prints of the US Jobless Claims and monthly Producer Price Index (PPI) to decorate today’s calendar but major attention will be given to the qualitative catalysts, like Brexit, covid and geopolitics, for clear directions.

Read: S&P 500 Futures rebound from yearly low, yields eye first weekly loss in 10 amid mixed clues

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD trades in negative territory below 1.0400 after US data

EUR/USD trades in negative territory below 1.0400 after US data

Following a short-lasting recovery attempt in the early trading hours of the American session, EUR/USD returned below 1.0400. The data from the US showed on Thursday that the Core PCE inflation edged lower to 4.7% in May from 4.9% in April.

EUR/USD News

GBP/USD jumps above $1,820 as US yields push lower

GBP/USD jumps above $1,820 as US yields push lower

Gold erased its daily losses and climbed into positive territory above $1,820 on Thursday. After the data from the US showed that the Core PCE inflation declined to 4.7% on a yearly basis in May, the 10-year US T-bond yield fell sharply, fueling XAU/USD's rally.

GBP/USD News

Gold stays on the back foot, retreats toward $1,800

Gold stays on the back foot, retreats toward $1,800

Gold has lost its traction and declined toward $1,800 following a consolidation phase in the early European session. Although the benchmark 10-year US Treasury bond yield is down more than 1%, the broad-based dollar strength weighs on XAU/USD. 

Gold News

Crypto winter to resume in Q3

Crypto winter to resume in Q3

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot yet again – their moves accelerated after a panel discussion that was held at Siyntra for the ECB yearly economic forum.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures