Asian equities rise as US inflation information not as bad as feared – SABC News

Shares in Asia rose on Wednesday, pushing up US inflation figures to exceed market expectations – and causing US yields to pause higher – even though Chinese stocks were under pressure from COVID-19.

Stock market sentiment was also limited by rising oil and other commodities prices after Russian President Vladimir Putin said peace talks had “returned to a dead end for us from time to time”, which also hurt the euro.

The MSCI’s broadest index for equities in Asia and the Pacific outside Japan rose by 0.5% and the Japanese Nikkei index rose by 1.54%.

S&P 500 futures rose 0.2% and Nasdaq futures rose 0.57% in Asian trading.

Data released on Tuesday showed that monthly consumer prices in the US rose the most in 16-1 / 2 years in March as the war in Ukraine raised gasoline prices to the highest levels, which supported the argument for a 50 basis point rise in interest rates from the Central Bank. next month.

On the other hand, monthly underlying inflationary pressures began, with commodity prices, excluding food and energy, falling the most in two years.

The inflation data lowered US yields on Tuesday and broke seven consecutive gains, although they regained some ground late in the day and at the start of trading on Wednesday.

The yield on 10-year Treasury bonds was 2.7498%, compared to a three-year high of 2.836%, for inflation figures.

The two-year yield was 2.4362%.

The movements in yields “tended to suggest that US inflation was likely to peak or be very close,” said Clara Cheong, a policy maker at JP Morgan Asset Management.

“While this is unlikely to change the Fed’s career from a 50-point rise in May, if inflation continues on this path, less pressure on them will be too aggressive in the second half of the year.

“On the other hand, stock markets returned profits as oil fell back above $ 100 a barrel as progress in Russia-Ukraine peace talks stalled and China began to reopen Shanghai very gradually.

Brent crude fell briefly below $ 100 earlier in the week, but rose sharply on Tuesday and gains continued on Wednesday trading.

Forward Brent crude rose 0.38% on Wednesday to $ 105.09 and US West Texas Intermediate rose 0.55% to $ 101.12.

CBA commodities analysts attribute the increase in oil to Putin’s statement, which led to an increase in agricultural prices, stating that “the already small risk that the Black Sea’s stocks could survive to some extent beyond the middle of the year has probably dropped to zero.

The future of maize rose to a one-month high and the wheat future reached a three-week high.

Chinese stock markets returned their gains since Tuesday afternoon, when shares in tourism and consumer goods rose after news that COVID-19 restrictions could be eased in some experimental areas.

Chinese blue flakes fell by 0.7% and Hong Kong fell by 0.2%.

They did not change much due to tariff information on Wednesday, which showed that China’s exports increased by 13.4% compared to the year-on-year in January-March, while imports increased by 7.5%.

China reported 26,525 new asymptomatic coronary heart disease cases and 1,513 asymptomatic on Wednesday.

Putin’s remarks were a major driver of foreign exchange markets, with the euro at a five-week low and commodity currencies receiving support as oil prices rose.

The New Zealand dollar rose by 0.6873 dollars by 0.33% after the Central Bank of New Zealand raised interest rates by 50 basis points.

It rose briefly to $ 0.6901 Spotgull rose 0.1% to $ 1,968 an ounce.

Asian equities rise as US inflation information not as bad as feared – SABC News

Source link Asian equities rise as US inflation information not as bad as feared – SABC News

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