HONG KONG (AP) — Asian stocks were mixed on Tuesday in a busy week with the Federal Reserve’s policy meeting as well as several upbeat reports on U.S. inflation.

US futures and oil prices fell.

In Tokyo, the Nikkei 225 index was up 0.3 percent at 39,155.16 as Japan revised higher. Economic data Monday was well received, while continued yen weakness boosted exports. Investors are looking ahead to the outcome of the Bank of Japan meeting. Central Bank Its benchmark interest rate rose From negative 0.1% to 0 to 0.1% in March for the first time in 17 years.

Analysts said the market was leaning toward two rate hikes by the end of this year, with widespread expectations of more rate hikes as soon as July.

Hong Kong’s Hang Seng fell 1.6 percent to 18,079.93, and the Shanghai Composite fell 0.9 percent to 3,022.96 after reopening from a public holiday. Markets remained cautious ahead of China’s inflation report on Wednesday.

Australia’s S&P/ASX 200 fell 1.6% to 7,735.50. South Korea’s Kospi was up 0.4 percent at 2,710.61.

On Monday, the S&P 500 rose 0.3% to 5,360.79, off an all-time high set last week. The Nasdaq Composite also hit a record 17,192.53 after rising 0.3 percent, while the Dow Jones Industrial Average added 0.2 percent to 38,868.04.

Data on the economy has been mixed recently, and traders are hoping for a slowdown that is less than a recession and just right in intensity. The cooldown would put less upward pressure on inflation, which could encourage the Federal Reserve to cut its key interest rate from the most punitive level in more than two decades.

But the data is hard to parse, with Friday’s stronger-than-expected jobs report coming on the heels of weaker-than-expected reports about U.S. manufacturing and other sectors of the economy. Even within US consumer spending, the heart of the economy, there is a sharp divide between Low income households Still with high inflation and high income households struggling to make ends meet.

“Bottom line, the data is mixed, with all the big macro outcomes for this year still on the table,” according to Morgan Stanley strategists led by Michael Wilson.

Meanwhile, companies benefiting from the AI ​​boom continue to report big growth regardless of how the economy and interest rates are performing.

NvidiaFor example, the stock is worth about $3 trillion and rose 0.7% on Monday after reversing early morning losses. It was the first day of trading for the company since a 10-for-1 stock split made its share price more affordable for investors, when it soared above $1,000 amid the AI ​​frenzy.

Treasury yields were mixed in the bond market ahead of reports at the end of the week that will show whether inflation improved last month at both the consumer and wholesale levels.

On Wednesday, the Federal Reserve will announce its latest decision on interest rates. Virtually no one expects it to move its base interest rate at this point. But policymakers will publish their latest forecasts of where they see interest rates and the economy headed in the future.

The last time Fed officials released such estimates, in March, they indicated that the Common Core forecast about three interest rate cuts in 2024. That estimate will almost certainly fall this time around. Wall Street traders are largely betting on just one or two rate cuts in 2024, according to CME Group data.

In the bond market, the yield on the 10-year Treasury rose to 4.46 percent from 4.43 percent late Friday. The two-year yield, which more closely tracks Fed expectations, fell to 4.88% from 4.89%.

In other business, benchmark U.S. crude oil was down 14 cents at $77.60 a barrel in electronic trading on the New York Mercantile Exchange.

International benchmark Brent crude fell 19 cents to $81.44 a barrel.

The US dollar rose to 157.25 Japanese yen from 157.04 yen. The euro rose to $1.0769 from $1.0766.


AP Business Writer Stan Chu contributed.

Source link