Asian Stocks Mixed as Investors Await US Inflation Data

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Asian Stocks,US Inflation Data,Federal Reserve

Asian stocks were mixed as investors await crucial US inflation data that could impact the Federal Reserve's decision on interest rates. Traders have adjusted their forecasts for monetary policy easing this year, with some even considering no cuts before 2025.

A bicycle rider passes an electronic quotation board displaying share prices of the Tokyo Stock Exchange and numbers of Asian markets in Tokyo on September 17, 2020.HONG KONG — Asian stocks were mixed Tuesday as attention turned to crucial US inflation data that could play a pivotal role in the Federal Reserve's decision-making on interest rates, with investors lowering their expectations for how many cuts it will deliver.

"This upcoming release is arguably the most critical economic print of the year," said Stephen Innes at SPI Asset Management. Investors are now expecting about 60 basis points of cuts this year -- suggesting just two reductions -- with a less than 50 percent chance of three, according to Bloomberg News.

Tokyo rose on a weaker yen, which is approaching the 152-per-dollar level many think could spark an intervention by Japanese authorities. But JPMorgan chief Jamie Dimon warned Wall Street markets were overvalued and said "persistent inflationary pressures" could see borrowing costs go higher.Hong Kong - Hang Seng Index: UP 1.0 percent at 16,905.96West Texas Intermediate: UP 0.4 percent at $86.75 per barrelNew York - Dow: FLAT at 38,892.

 

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