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Asian stocks show positive trend as investors await key data
(MENAFN) Asian stock markets showed a positive trend on Monday, buoyed by Japan's absence from the trading scene, which provided a welcome break from recent market fluctuations. Investors are now turning their attention to forthcoming economic data from the United States and China, seeking clues about global economic health.
The Federal Reserve's upcoming decision will hinge on United States consumer price data, scheduled for release on Wednesday. Analysts forecast a 0.2 percent rise in both headline and core inflation rates, with the annual core inflation expected to decelerate slightly to 3.2 percent. According to Barclays analysts, this data could reinforce the Fed’s belief in ongoing disinflation, potentially supporting a rate cut in September. However, a core inflation rate still above target may argue against a more substantial 50 basis point reduction or any intra-meeting rate cuts.
In addition to inflation data, the market is also awaiting figures on retail sales, industrial output, and housing starts, as well as various economic surveys. Current market expectations suggest a 49 percent chance of a 50 basis point Fed rate cut in September, a decrease from the previous week’s 100 percent forecast.
In the Asian markets, MSCI’s broad index of Asia-Pacific shares outside Japan gained 0.6 percent, with Taiwan leading the charge with a 1.6 percent increase. Chinese blue-chip stocks saw a modest rise of 0.1 percent.
European and US futures also showed upward momentum. The ongoing earnings season has seen approximately 91 percent of S&P 500 companies report results, with 78 percent exceeding expectations. Upcoming earnings reports from Walmart and Home Depot are anticipated to provide additional insights into US consumer spending trends.
On Thursday, China is expected to release its retail sales and industrial production data, which are anticipated to reflect continued economic challenges. This data may underscore the need for further stimulus measures to support the Chinese economy.
The Federal Reserve's upcoming decision will hinge on United States consumer price data, scheduled for release on Wednesday. Analysts forecast a 0.2 percent rise in both headline and core inflation rates, with the annual core inflation expected to decelerate slightly to 3.2 percent. According to Barclays analysts, this data could reinforce the Fed’s belief in ongoing disinflation, potentially supporting a rate cut in September. However, a core inflation rate still above target may argue against a more substantial 50 basis point reduction or any intra-meeting rate cuts.
In addition to inflation data, the market is also awaiting figures on retail sales, industrial output, and housing starts, as well as various economic surveys. Current market expectations suggest a 49 percent chance of a 50 basis point Fed rate cut in September, a decrease from the previous week’s 100 percent forecast.
In the Asian markets, MSCI’s broad index of Asia-Pacific shares outside Japan gained 0.6 percent, with Taiwan leading the charge with a 1.6 percent increase. Chinese blue-chip stocks saw a modest rise of 0.1 percent.
European and US futures also showed upward momentum. The ongoing earnings season has seen approximately 91 percent of S&P 500 companies report results, with 78 percent exceeding expectations. Upcoming earnings reports from Walmart and Home Depot are anticipated to provide additional insights into US consumer spending trends.
On Thursday, China is expected to release its retail sales and industrial production data, which are anticipated to reflect continued economic challenges. This data may underscore the need for further stimulus measures to support the Chinese economy.
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