Asia stocks rise; metals fly on manufacturing bets

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Asia stocks rise; metals fly on manufacturing bets

© Reuters. Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File PhotoSINGAPORE - Industrial metals prices extended their gains on Tuesday with expectations of a worldwide manufacturing rebound, while Asian shares crept up a little more cautiously ahead of this week's U.S. inflation data and a crucial European Central Bank meeting.

Expectations for U.S. rate cuts have been evaporating and where in January markets had expected more than 150 basis points in cuts, investors now are not even sure of half that many. The dollar has struggled to follow the rates higher, however, with the euro firm in case of a hawkish surprise from the ECB and the commodity currencies rallying.The ECB is expected to hold interest rates, but flag a cut the markets have priced for June.The yen, meanwhile, continues to face heavy pressure as investors see any lags in global rate cuts as leaving the gap open wide with Japan's near-zero interest rates.

Japanese Finance Minister Shunichi Suzuki said authorities will not rule out any options in dealing with excessive yen moves, repeating his warning that Tokyo is ready to act against the currency's recent sharp declines.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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