Asia shares brace for rate hikes, earnings rush

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SYDNEY : Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.Earnings from a who's who of tech giants will also test the mettle of Wall S

SYDNEY : Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.

Early Monday, the index was up 0.1 per cent as investors looked forward to China's market resuming after the Lunar New Year holidays, while Japan's Nikkei added 0.2 per cent.Investors are confident the Federal Reserve will raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a real shock.

That dovish outlook will also be tested by data on U.S. payrolls, the employment cost index and various ISM surveys. "Based on our recent Asia supply chain checks we believe iPhone 14 Pro demand is holding up firmer than expected," they added."Apple will likely cut some costs around the edges, but we do not expect mass layoffs."

 

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