Asian Markets Fall Ahead of U.S. Inflation Report
BANGKOK (AP) — Shares in most Asian markets fell on Thursday as investors awaited a key U.S. inflation report due Friday that could impact future interest rates.
Major benchmarks in Tokyo, Hong Kong, and Sydney all dropped by more than 1%, while oil prices and U.S. futures also declined.
The focus this week is on the U.S. government’s upcoming inflation report, specifically the personal consumption expenditures index (PCE), which is the Federal Reserve’s preferred measure of inflation. Analysts suggest that recent mixed data has left investors in a cautious stance.
The outcome of the inflation report could influence the Federal Reserve’s decision on when to start cutting interest rates, which are currently at their highest level in over two decades and are affecting global markets.
In Asian trading, efforts to boost the Chinese property market did not lift market sentiment. Hong Kong’s Hang Seng fell 2%, while the Shanghai composite index was down 0.6%.
Beijing, one of China’s major cities, recently implemented measures to revive the property sector by reducing minimum down-payment ratios and mortgage interest rates. However, similar measures taken by other Chinese cities have not yet yielded significant results.
In Tokyo, the Nikkei 225 index was down 0.8% amid concerns over the weakening Japanese yen.
Meanwhile, Australia’s S&P/ASX 200 fell 0.3%, Taiwan’s Taiex lost 0.4%, and Bangkok’s SET sank 0.7%. However, shares rose in Mumbai, Jakarta, and Singapore.
On Wall Street, the S&P 500 index rose 0.2%, with the Dow Jones Industrial Average finishing slightly higher and the Nasdaq composite rising 0.5%.
Key players like Amazon.com, FedEx, and Rivian helped offset losses in the market, with Amazon surpassing $2 trillion in market value for the first time.
Investors are hopeful that the Federal Reserve will soon begin cutting interest rates to address inflation concerns. The economy, while relatively strong, is showing signs of slowing down, prompting speculation about a potential rate cut at the central bank’s September meeting.
In other news, benchmark U.S. crude oil prices dipped slightly, while the euro rose against the dollar.
Overall, market watchers are keeping a close eye on the upcoming U.S. inflation report and its potential impact on global markets.
