Japan’s economy avoided falling into a recession at the end of last year, helped by robust spending by businesses, an outcome that improves the optics for the central bank as it mulls the timing of its first interest rate hike since 2007.
Global stock indexes rallied to record highs on Thursday, while government bond yields fell after the European Central Bank held interest rates steady and Federal Reserve Chair Jerome Powell reiterated that easing was likely in 2024 if inflation behaved.
Asian shares tracked Wall Street’s gains on dovish signs from central banks, with focus on US jobs data due later Friday. The yen rose on speculation the Bank of Japan will soon tighten policy.
Currencies and bonds in emerging Asia are moving less in tandem with each other, as domestic forces begin to outweigh offshore influences.
Two Nvidia Corp. directors sold about $180 million in shares of the chipmaker in recent days, becoming the latest insiders to cash in as the stock continues to push deeper into record territory.
Stocks in Asia were mixed as investors focused on an upcoming press conference at China’s policy meeting after official announcements of an ambitious 5% growth target. Traders also awaited testimony from Federal Reserve Chair Jerome Powell.
One question is obsessing Tokyo’s financial markets — when will the Bank of Japan exit negative interest rates? The country’s biggest bank expects the move to come in two weeks and is positioning itself accordingly.
There is no shortage of potential market-moving events in Asia on Tuesday, from key economic indicators to the start of Chinas eagerly-awaited National Peoples Congress (NPC), but current momentum is likely to limit any potential downside.
Price growth in Tokyo surged back above the Bank of Japan’s target in February, a jump that supports the case for the central bank’s first interest rate hike since 2007.
China is set to announce its 2024 growth target and outline its strategy for supporting the slowing economy at the nation’s most high-profile annual political gathering this week.
Japan’s Nikkei 225 Stock Average climbed above the psychological level of 40,000 for the first time, opening the door to further gains in its historic rally.
Wall Street traders fearing another disappointing inflation report got a degree of relief after the Federal Reserve’s favored price gauge was on spot with estimates.
Japan’s job market remained tight in January, keeping pressure on companies to pledge solid wage increases in annual negotiations currently underway with labor unions.
Equities in Asia were mixed, while Treasuries steadied after Wednesday’s gains ahead of the Federal Reserve’s key inflation metric that will help identify the path forward for interest rates. Bitcoin surged past $61,000.
The European Central Bank will lower interest rates when it’s convinced that consumer-price growth is returning to its target, Vice President Luis de Guindos reiterated.
