Equities in Asia Rise as Investors Await Fed Inflation Data
Investors in Asia are closely watching the Federal Reserve’s preferred inflation gauge, set to be released on Friday, as equities in the region followed gains in US stocks and Treasuries.
Shares in Japan’s benchmark Topix index were on track to reach a 34-year high, while South Korean stocks also saw gains. However, futures for Hong Kong were slightly lower. This comes after a mixed day for US megacaps, with Amazon.com Inc. rising and Nvidia Corp. falling.
The upcoming debate between President Joe Biden and former President Donald Trump is also causing market speculation, as their differing approaches to taxes, electric cars, and cryptocurrencies could lead to market swings.
Meanwhile, Treasuries held onto gains from the previous session, with the 10-year Treasury yield falling to 4.29% on Thursday. Lackluster US economic data has fueled speculation that the Fed may cut interest rates this year to prevent a larger economic slowdown.
In other news, India is preparing for the inclusion of government bonds into JPMorgan Chase & Co.’s emerging markets index, opening up a $1.3 trillion market to a wider range of investors.
Overall, investors are anticipating the Fed’s inflation data release and are closely monitoring the market for any signs of a rate cut later this year. Stay tuned for more updates on this developing story.
