Daily Guardian: Asian Stocks Rise Before Key US Inflation Data
Asian shares surged on Monday following gains on Wall Street, with investors closely watching US consumer price data for clues on the Federal Reserve’s policy outlook. Benchmarks in Japan, South Korea, and mainland China showed modest increases, while several markets in the region were closed for a public holiday.
The S&P 500 wrapped up the first quarter on a positive note, reaching its 22nd record of the year thanks to healthy US economic data. The surge in US equity values, totaling $4 trillion in the past three months, surprised many skeptics who had predicted a downturn.
Traders are on alert for potential swings in Japan’s currency after warnings from officials, who argue that its weakness is not in line with economic fundamentals. There is growing concern about possible intervention in the country’s currency market.
In other news, China’s property firms are facing challenges, with one delaying its earnings report and another posting a decline in profits. Swaps traders have slightly reduced their bets on a rate cut by the Fed in June, following strong advances in US GDP and consumer spending.
Gold reached an all-time high, while oil saw a 16% gain in the first quarter. Cryptocurrencies experienced mixed movements, with Bitcoin falling and Ether rising.
Key events to watch for this week include US personal income and spending data, the PCE deflator, and speeches by Fed officials. Major market moves included a rise in Japan’s Topix and the Shanghai Composite, a fall in the Nasdaq 100, and a slight increase in the Bloomberg Dollar Spot Index.
This report was produced with the help of Bloomberg Automation and reporters like Youkyung Lee and Daisuke Sakai. Stay tuned to The Daily Guardian for more updates on the global financial markets.