Asian Stocks Set to Climb After US CPI Lifts Mood: Markets Wrap

vy}126rk56j(60czyqmb6trh_media_dl_1.png BloombergArticle content(Bloomberg) — Asian equities were poised to rise Monday after recent selling pressure in US stocks eased and inflation data supported the outlook for Federal Reserve rate cuts this year.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentEquity index futures for Japan and Australia pointed to gains, at the start of a week marked by the Lunar New Year holiday that will affect markets across the region. Mainland China will be closed all week, while Hong Kong will reopen Friday. US markets are closed Monday for Presidents’ Day.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe dollar was steady against major currencies in early Sydney trading. Bitcoin traded around $68,800 after swinging over the weekend. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe muted moves indicated a broadly supportive backdrop for risk sentiment after consecutive weekly declines for the S&P 500, driven by uncertainty about the impact of AI on businesses from software to logistics.Article contentFriday data showed the US consumer price index rose 0.2% in January, the smallest gain since July and restrained by lower energy costs. While services costs picked up last month, prices of core goods remained stable and the core CPI rose from a year ago by the least since 2021. Article contentThe data was supportive of US rate cuts, lifting Treasuries. The US 10-year and policy-sensitive two-year yields dropped five basis points on Friday. Traders continue to fully price in a Fed rate cut in July, as well as a strong likelihood of a move in June. Australian yields fell early Monday.Article content“Overall, this won’t change Fed policy, but it will ease the path towards a cut in rates sooner rather than later,” said Neil Birrell at Premier Miton Investors.Article contentArticle contentIn Asia, data set for release includes gross-domestic product for Thailand, industrial production for Japan and wholesale prices, trade and unemployment for India.Article contentIn China, President Xi Jinping signaled a desire to “fully leverage the advantages of China’s super-large-scale market,” as he called for anchoring economic growth around domestic demand, in a speech released Sunday.Article contentGoldman Sachs Group Inc. upgraded its forecast for China’s current-account surplus this year. Elsewhere, a worsening earnings picture is darkening the outlook for Chinese equities.Article contentInvestors will be keeping a close eye on geopolitical developments. US Secretary of State Marco Rubio and Japanese Foreign Minister Toshimitsu Motegi reaffirmed their commitment to deepen bilateral ties in a meeting Saturday, as the Asian nation faces escalating tensions with China. Article contentFederal ReserveArticle contentFriday’s US inflation data suggest that price pressures remain a little too hot for comfort, but the direction of travel for inflation continues to look to be lower — even if this has proved a bumpy and slow process, according to James McCann at Edward Jones.Trending Stellantis Canada CEO says sale of Ontario battery plant was due to poor EV demand Commodities Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times Carney Plots 'Buy Canada' Defense Strategy to Unlock Billions in Investment PMN Business 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate Gasoline-Starved California Is Turning to Fuel From the Bahamas PMN Business Article content“For the Fed, this probably doesn’t change much in the near term,” he said. “We do see scope for further easing later this year. However, this is contingent on a more convincing decline in inflation towards target with the urgency for additional cuts lower now that downside risks in the labor market have seemingly eased.”Article contentFed Bank of Chicago President Austan Goolsbee said the central bank can cut rates further if inflation is on track to reach its 2% target, but that’s not currently the case.Article content“Right now we are not on a path back to 2%. We’re kind of stuck at 3%, and that’s not acceptable,” Goolsbee said Friday on Yahoo! Finance.Article contentSome of the main moves in markets:Article contentStocksArticle contentS&P/ASX 200 futures rose 0.6% as of 7:20 a.m. Tokyo timeNikkei 225 futures rose 1.1%Article contentCurrenciesArticle contentThe euro was little changed at $1.1872The Japanese yen was little changed at 152.64 per dollarThe offshore yuan was little changed at 6.9041 per dollarArticle contentCryptocurrenciesArticle contentBitcoin was little changed at $68,857.7Ether rose 0.2% to $1,960.71Article contentBondsArticle contentAustralia’s 10-year yield declined three basis points to 4.71%Article contentThis story was produced with the assistance of Bloomberg Automation.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Stellantis Canada CEO says sale of Ontario battery plant was due to poor EV demand Commodities Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times Carney Plots 'Buy Canada' Defense Strategy to Unlock Billions in Investment PMN Business 'Escape hatches are gone': Power of sale listings surge in Toronto Real Estate Gasoline-Starved California Is Turning to Fuel From the Bahamas PMN Business