Beautiful Virgin Islands

Saturday, Mar 25, 2023

Global Markets: Asian equities hit 9-month high as recession fears wane

Global Markets: Asian equities hit 9-month high as recession fears wane

Asian stocks rose on Friday and were poised for their fifth straight week of gains after data highlighted a resilient US economy, boosting investor sentiment ahead of next week’s slate of central bank policy meetings.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much as 0.55 percent to hit an almost nine-month high of 562.10, and was last at 559.39.

The index, which fell nearly 20 percent last year, is up nearly 11 percent so far this month and is on course for its best-ever January performance. Japan’s Nikkei rose 0.05 percent.

European stock futures indicated that stocks were set to rise, with the Eurostoxx 50 futures up 0.3 percent, German DAX futures 0.28 percent ahead and FTSE futures up 0.16 percent.

The US economy grew faster than expected in the fourth quarter as consumers boosted spending on goods, data showed, but it could be the last quarter of solid GDP growth before the lagged effects of the Federal Reserve’s jumbo interest rate hikes are fully felt.

A separate report showed that labor market remains tight and could lead the Fed to keep interest rates higher for longer.

Ashwin Alankar, head of Global Asset Allocation at Janus Henderson Investors, said the headline GDP suggested robust economic activity and if a recession were to materialize it would be a shallower one.

“Overall GDP data was a ‘tale-of-two cities’ – good overall growth stemming from less-than-ideal drivers and prices mitigating but at a rate that is worrisome.”

Thursday’s set of data has raised investor hopes of a soft landing — a scenario in which inflation eases against a backdrop of slowing but still resilient economic growth.

Futures are pricing in a 94.7 percent probability of a 25-basis-point hike next Wednesday and see the Fed’s overnight rate at 4.45 percent by next December, or lower than the 5.1 percent rate Fed officials have projected into next year.

Data on US personal consumption expenditures due at 1330 GMT will provide further clues on inflation.

“The disinflation impulse is likely to stretch further, as has been evident from CPI releases lately, likely continuing to build a case for a 25 basis point rate hike by the Fed next week,” Saxo strategists said.

Next week will also feature Bank of England and European Central Bank meetings that will indicate the monetary policy path those central banks are likely to take.

Hong Kong’s Hang Seng Index was little changed after surging more than 2 percent on Thursday. Mainland China markets are due to resume trading on Monday after the Lunar New Year holiday.

Elsewhere in Japan, core consumer prices in Tokyo, a leading indicator of nationwide trends, rose 4.3 percent in January from a year earlier, marking the fastest annual gain in nearly 42 years.

The Japanese yen strengthened 0.1 percent to 134.04 per dollar as the data reinforced market expectations that quickening inflation could nudge the Bank of Japan to move away from its ultra-easy policy.

“We still think the policy change is a long way off,” ING regional head of research Robert Carnell said. “The spring salary negotiations are key to watch as wage growth is a prerequisite for sustainable inflation.”

The dollar index, which measures the US currency against six other peers, rose 0.23 percent, while the euro fell 0.22 percent to $1.0866.

Sterling was last trading at $1.23805, down 0.25 percent on the day.

Oil prices rose on expectations of a boost to demand from China’s reopening and after the strong US data. US West Texas Intermediate crude rose 0.41 percent to $81.34 per barrel and Brent was at $87.83, also up 0.41 percent on the day.
Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Powell: Silicon Valley Bank was an 'outlier'
I have a dream, MLK inspiring speech
Donald Trump arrested – Twitter goes wild with doctored pictures
Aretha Franklin, Marvis Staples - Oh Happy Day
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
BVI Freedom Song
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Billy Preston - You Can't Beat God Giving (Live)
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Paris Rioting vs Macron anti democratic law
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
'Sexual Fantasy' Assignment At US School Outrages Parents
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Credit Suisse to borrow $54 billion from Swiss central bank
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Russian Hackers Preparing New Cyber Assault Against Ukraine
Hello Dolly
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
If this was in Tehran, Moscow or Hong Kong
Bob Marley - Get Up Stand Up
Nashville police officer, and a female driver shooting one another
Yes He Can
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
What A Friend We Have In Jesus
Mexican President Claims Mexico is Safer than the U.S.
Unforgettable
A brief banking situation report
Touch The Hem Of His Garment
Lady bites police officer and gets instantly reaction
The Lord's Prayer
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
THE GOD MOVEMENT...BEAUTIFUL BVI
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Siyahamba
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Silicon Valley Bank exec was Lehman Brothers CFO
Ramblin' Rose
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Protoje - Who Knows ft. Chronixx
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Pressure - Virgin Islands Nice
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Phil Wickham - House Of The Lord
Elon Musk Is Planning To Build A Town In Texas For His Employees
My God Is Real (Yes, God Is Real)
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Louis Armstrong - When The Saints Go Marching In
Fitness scam
Kanye West Sunday Service - hallelujah, salvation, and glory
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Jonathan Nelson - I Believe (Island Medley
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
From The Virgin Islands Sqad Up
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Common, John Legend - Glory
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Banking regulators close SVB, the largest bank failure since the financial crisis
I have a dream, MLK inspiring speech
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Aretha Franklin, Marvis Staples - Oh Happy Day
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
BVI Freedom Song
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
Billy Preston - You Can't Beat God Giving (Live)
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Hello Dolly
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
×