HONG KONG, Feb 15 — Asian stocks slipped while the US dollar held firm today following US inflation data and remarks from central bank officials that have investors worrying interest rates are going to be higher for longer.
Fed funds futures now imply a peak above 5.2 per cent by mid-year and rates above 5 per cent at year’s end. S&P 500 futures dropped 0.4 per cent in Asia. Wall Street stocks ended mixed yesterday after the inflation reading.“If I combine this earlier Fed rhetoric trying to keep the rates higher for longer and the recent CPI number...then it seems likely that there should be some degree of moderation in the equity markets, both developed markets and Asian markets,” said Manishi Raychaudhuri, head of Asia Pacific equity research at BNP Paribas.