Asian markets mostly lower as traders await fresh data


HONG KONG: Asian markets began Tuesday (Feb 27) mostly lower after record-setting gains last week, with traders eyeing the release of fresh economic data this week that could offer a better sense of when central banks may cut rates.

Last week's rallies -- including an all-time record close for Tokyo's benchmark index -- were fuelled by solid earnings from US chip titan Nvidia, a bellwether for artificial intelligence.

But US markets fell on Monday, and Asian equities started this week with a "more cautious demeanour", Stephen Innes, managing partner of SPI Asset Management, said in a note.

"This subdued tone suggests a moderation in investor sentiment following the recent tech-driven buying spree," he said.

Investors were looking ahead to the Federal Reserve's preferred measure of inflation, the US Personal Consumption Expenditure (PCE) price index due Thursday, as well as comments from several Fed officials on Wednesday and Friday, which Innes said could supply insights into the central bank's rate cut outlook.

Expectations for when the Fed may start lowering rates have gradually shifted to the second half of the year, as inflation data has come in hot and policymakers indicate they need to see more signs that it is moving towards their 2.0 per cent target.

"Economic data will return to centre stage," Chris Larkin at E*Trade from Morgan Stanley told Bloomberg.

"After hotter-than-expected (consumer price index) and (producer price index) readings earlier this month, more people may be looking to the PCE for insight into the reinflation threat -- and how it may influence the Fed's timing of rate cuts."

In Asia, Tokyo stocks advanced at the open on Tuesday, helped by a slightly cheaper yen and rises in US chip-linked shares, according to senior market analyst Toshiyuki Kanayama of Monex.

Analyst Takuma Ikemoto of the Tokai Tokyo Research Institute said in Tokyo, bargain-hunting was moving from chip-linked stocks to other major shares.

New government data showed Tuesday that Japanese consumer inflation slowed for the third straight month to 2.0 percent in January.

The better-than-expected reading has stoked speculation that the Bank of Japan might raise interest rates "as early as next month, although April remains the favoured timeline", Innes said.

"The prevailing theory suggests that the BOJ might find it easier to proceed with policy normalization, with inflation surpassing the target."

Unlike other major central banks that have raised interest rates in an effort to bring down inflation, the BoJ has stuck to its ultra-loose policy, putting pressure on the yen.

Shanghai stocks were up on Tuesday, while Hong Kong fell.

Sydney, Seoul, Mumbai, Taipei, Singapore, Jakarta, Bangkok, Manila and Wellington were also trading lower.

Following the PCE figures, investors will turn their focus to Chinese manufacturing numbers due Friday. - AFP

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Asian , equities , market , Feb 27

   

Next In Aseanplus News

China’s thirsty data centres, AI industry could use more water than size of South Korea’s population by 2030, report warns
Younger Singaporeans financially prudent, but some buy things to be happy: IPS poll
Road accidents kill 37 people during Cambodian New Year holiday
Pop star Jackson Wang makes surprise appearance at Coachella, duets with K-singer Bibi
IMF revises Malaysia's 2024 GDP higher to 4.4%
Attractive China farm worker, 26, becomes Internet sensation after quitting office job to work with animals
Death sentence for murderer 'Boy Tiger' commuted to 35 years' jail
Zainal Abidin, Sharizan Borhan and more to perform in 'All That Jazz' in PJ on April 21
Humble China street vendor makes sacrifices to support academically gifted daughters who gain PhD and master’s degree, goes viral
Body of Lahad Datu OCPD's teen daughter discovered by elder sister, says IGP

Others Also Read