Asian shares were broadly higher on Tuesday as global investors awaited the latest US inflation figures, a vital datapoint that could sway the Federal Reserve’s monetary policy stance.
Japan’s benchmark Nikkei index added 2.2% in Tuesday morning trade, boosted by a tame producer price index report showing a mild 0.2% increase annually. “The muted price growth may imply limited passthrough to consumer inflation, potentially allowing the Bank of Japan room to maintain its patient approach for now,” said Yeap Jun Rong, market analyst at IG.
Australia’s S&P/ASX 200 edged up 0.1%, while South Korea’s Kospi index jumped 1.2% to 2,651.33. Equity trading remained closed across China, Hong Kong and Taiwan for the Lunar New Year celebrations.
On Wall Street, major indexes closed on a mixed note following another record-setting week. The S&P 500 slipped 0.1% to 5,021.84 as declines in Microsoft and select technology names offset gains across most sectors. The tech weakness also pulled the tech-heavy Nasdaq 0.3% lower, though it hovered near all-time highs. Meanwhile, the Dow closed 0.3% higher at a new record peak. Additionally, you can also read about- Top 3 E-Commerce Stocks.
Markets were relatively calm, with Treasury yields holding steady. Investor focus now turns to today’s US inflation update, which economists predict will show prices retreating below 3% again.
Going forward, worries linger about whether towering stock valuations are too heavily dependent on the mega-cap tech giants. Broader profit growth beyond the “Magnificent Seven” could ease bubble concerns. Fears also persist around commercial real estate exposure at major banks following New York Community Bancorp’s shocking loss report. Its stock slid a further 0.2% on Monday as regional bank shares rose 1.8%.
In the bond market, the benchmark 10-year Treasury yield dipped to 4.16% while the 2-year yield held at 4.48%, signalling steady rate hike expectations. As inflation cools, markets are betting on Fed rate cuts this year to spur financial assets, though resilient data and hawkish rhetoric have repeatedly pushed back forecasts. If you want you can also read- Google Bard’s Top Stock Picks.
Oil edged up slightly, with US crude adding 3 cents to $76.95 a barrel. The US dollar strengthened 0.1% against the Japanese yen in morning currency trading.
