Markets bounce as MidEast fears ease, US inflation in view


HONG KONG: Asian markets rose Monday (April 22), clawing back some of last week's losses, as Middle East worries subsided while traders look ahead to the release of key US inflation data and corporate earnings.

With Iran downplaying Israel's reported attack on the country, which came days after a drone and missile strike by Tehran, tensions between the regional rivals cooled.

While the situation remains tense, the lack of escalation over the weekend provided traders with an opportunity to pick up equities and helped push oil down.

The gains came despite a largely negative lead from Wall Street, where the Nasdaq shed more than two percent owing to hefty selling in tech giants including Amazon, Apple and Netflix.

Investors are now setting their sights on the personal consumption expenditures (PCE) index, the Federal Reserve's preferred gauge of inflation, which is due Friday.

The reading could play a major role in the central bank's decision-making on interest rates and comes after a third successive month of above-forecast consumer price index figures.

The disappointing CPI data has dented hopes for a cut in June, while traders have scaled back their outlook for how many the Fed will make this year.

The PCE report is followed by the bank's policy announcement next week, which will be pored over for clues about its next step.

Several officials have lined up to temper expectations for cuts, citing sticky inflation as well as a still-strong economy and labour market.

Chicago Fed boss Austan Goolsbee said last week that the battle against surging prices had stalled.

"Right now, it makes sense to wait and get more clarity before moving," he said, warning that bringing inflation back to the bank's two per cent goal would likely take longer than initially thought.

Earnings from big-name firms including Google parent Alphabet, Tesla and Microsoft are also in play this week, with investors hoping for strong reports to back up a recent surge in equities. - AFP

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

Asian , equities , market , April 22

   

Next In Aseanplus News

HK actor Johnny Ngan Kwok Leung, who suffered from skin cancer, dies at 71
Cricket-Australia's Starc justifies price tag in warning shot before World Cup
Thai lawmaker sentenced to 2 years in prison for insulting monarchy, lawyer says
SQ321 incident: SIA CEO praises staff and promises help to ease anxiety
Most Asian markets rise as traders eye US inflation
Philippines and Sweden sign pact on fighter purchases
Riskier approach helps Siddharth Jagadeesh become S’pore’s youngest chess grandmaster
Six guns, drugs worth RM4.6mil seized in Penang raids
Free food? Modi makes sure every Indian knows whom to thank for it.
N. Korea says plans to launch satellite by June 4: Japanese media

Others Also Read