Asian markets mixed after Wall St hit by US inflation fears

Asian markets mixed after Wall St hit by US inflation fears

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Asian Markets Mixed as Wall Street Faces US Inflation Concerns

Asian markets showed mixed results following Wall Street’s decline due to inflation worries in the US economy

Business

Asian Markets, Wall Street, US Inflation, Economy, Interest Rates

Tokyo: The US job market is putting pressure on the Federal Reserve to keep interest rates steady. This has caused some jitters in the markets.

On Wednesday, stocks were all over the place after Wall Street took a hit. The drop was triggered by news that the US economy and job market are still strong, which isn’t great for hopes of interest rate cuts.

Inflation fears are already high, especially with Trump hinting at tax cuts and deregulation if he returns to the White House. This latest data just adds to the uncertainty.

A key survey showed the US services sector picked up in December, with prices rising more than expected. Plus, job openings hit a six-month high, which is a bit surprising.

These numbers suggest the Fed might slow down on cutting rates, especially after they made three cuts last year due to easing inflation.

Now, everyone’s waiting for the non-farm payrolls report coming out Friday. That’ll give us a clearer picture of the job market and the economy.

Yields on 10-year US Treasuries are climbing, and they might hit five percent for the first time since October. This follows the Fed’s recent shift to a more cautious stance on rate cuts.

On Wall Street, all three major indexes ended lower, with tech stocks taking a big hit. Nvidia, a major player in the chip market, saw its shares drop after a not-so-great product launch.

In Asia, markets had a rough start. Cities like Hong Kong, Tokyo, and Shanghai saw declines, while Sydney and Singapore managed to rise a bit.

Experts say the Fed is likely to take a cautious approach to rate cuts, given the strong job market and ongoing inflation concerns. Investors are betting against any rate changes this month, with odds for a cut before June now below 50 percent.

Here are some key figures: Tokyo’s Nikkei 225 is down 0.4 percent, Hong Kong’s Hang Seng Index is also down 0.4 percent, and Shanghai’s Composite is down 0.1 percent.

In currency news, the euro is up against the dollar, and the pound is also gaining. Meanwhile, oil prices are slightly up, with West Texas Intermediate at $74.71 per barrel.

Overall, it’s a mixed bag out there, and everyone’s keeping a close eye on what the Fed will do next.

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