Fed Ready to Cut? Asia Steps on the Gas—Until When?
Asian markets also rallied following the global rally, after relatively benign US inflation data and a weakening labor market reinforced the prospect of a Fed interest rate cut next week. The MSCI Asia stock index rallied for seven consecutive days and approached a new record, following the S&P 500 and Nasdaq 100, which closed at record highs. Global stock indexes also set records, while US stock futures were flat on Friday.
US data showed the Consumer Price Index (CPI) rose 0.3% month-on-month and 3.1% year-on-year, as expected. At the same time, claims jumped weekly to a nearly four-year high. This combination reinforced market confidence that the Fed would cut interest rates on September 16-17, with some predicting further cuts through the end of the year.
In the bond market, the 10-year US Treasury yield maintained its decline from Thursday; Australian and New Zealand yields also weakened. The Bloomberg Dollar Index remained relatively stable. Gold stabilized after a slight decline and earlier hit an inflation-adjusted record high. Meanwhile, oil prices fell for a second day due to a worsening market outlook, including concerns about geopolitical supply disruptions.
From corporates, Microsoft shares rose in the after-hours session after the tech giant and OpenAI reached a deal; Adobe also gained on solid revenue projections. Hyundai said its US battery project was delayed due to labor shortages. Today's Asian agenda includes Japanese industrial production and Indian inflation, while data on China's money supply and new credit could be released until September 15th. Investors are also keeping an eye on Alibaba shares in Hong Kong after its US ADR surged 8% on Thursday. (ayu)
Source: Newsmaker.id
