Asian Stock Market: Cautious optimism prevails ahead of US inflation, DXY, Oil print mild losses

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Asian Stock Market: Cautious optimism prevails ahead of US inflation, DXY, Oil print mild losses – by anilpanchal7 Asia RiskAppetite Inflation CentralBanks Equities

Japan GDP, hawkish hopes from BoJ appointments probe sentiment.Market’s positioning for upbeat US CPI allows bulls to keep the reins.remains mildly positive in the Asia-Pacific zone as traders brace for the key US inflation data during early Tuesday. That said, softer US Treasury yields and the upbeat performance of Wall Street put a floor under the equities but hawkish concerns surrounding the Bank of Japan join mixed Aussie data and fears emanating from China to weigh on sentiment.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan rises 0.33% intraday whereas Japan’s Nikkei 225 adds 0.65% to 27,600 heading into the European session. It’s worth noting that Japan’s preliminary readings of the fourth quarter Gross Domestic Product data came in mixed and favored the equity trader in Tokyo. As per the readings, the Q4 GDP reversed the previous 0.2% contraction with the same quarterly growth figures. However, the GDP Deflator rose to 1.1% versus -0.3% expected and prior during the stated period. On the contrary was the official nomination of Kazuo Ueda as the BoJ leader.

On the other hand, fresh fears of the US-China tension over the balloon shooting also challenge the sentiment and probe thebuyers. US Congress will take a bipartisan look at unidentified aerial objects that have made their way into U.S. and Canadian airspace, and why they were not found sooner,” said US Senate Majority Leader Chuck Schumer.

Amid these plays, stocks in Australia and New Zealand print mild gains but those from China remain depressed even as the People’s Bank of China is up for increasing the quota of its Medium-term Lending Facility in February, per China Securities On a broader front, hawkish Fed talks join a retreat in the US inflation expectations to confuse market players ahead of the key US data. However, softer US Treasury bond yields allow traders to remain optimistic.

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