Asian Stocks Poised to Gain, Chinese PMI Expands: Markets Wrap – Yahoo Finance

March 31, 2024

(Bloomberg) – Asian stock markets are expected to open higher on Monday after new inflation data didn’t do enough to change the view that the U.S. Federal Reserve will cut interest rates this year.

Most Read Articles on Bloomberg

Stock futures for the Nikkei 225 index rose while trading remained suspended in Australia and Hong Kong due to public holidays. US stock contracts rose in early Asian markets.

In China, the official manufacturing purchasing managers’ index expanded in March for the first time since September. The figures suggest the world’s second-largest economy is maintaining traction after a solid start to the year, prompting policymakers to assess the effectiveness of stimulus measures so far. Could give more time for.

“The industrial sector appears resilient, supported by strong exports,” said Zhang Chiwei, chief economist at Pinpoint Asset Management. “Economic momentum could improve if fiscal spending increases and exports remain strong.”

In the United States, the Fed’s preferred inflation measure is “very much in line with our expectations,” Chairman Jerome Powell said on Friday, adding that cutting interest rates would not be appropriate until the agency is confident that inflation is under control. Investors expect the U.S. central bank to make its first rate cut in June.

The core personal consumption expenditure price index, which excludes volatile food and utility costs, rose 0.3% in February following the previous month’s rise, marking the largest increase in a year. The figure is up 2.8% from a year ago and remains above the Fed’s 2% target.

“Right now the Fed is relying heavily on data,” said Matthew Ruzzetti, chief U.S. economist at Deutsche Bank. “Until we get corroboration or a different view of what the data is going to be, it’s a little hard to tell exactly what the situation is going to end up being from a Fed policy perspective.”

Investors will also focus on U.S. Treasuries as trading resumes during Asian hours on Monday. The dollar has weakened slightly since early Monday, weakening against the currencies of most of the Group of Ten (G10) countries.

Wall Street traders pushed the S&P 500 index to its 22nd record of the year late last week. The $4 trillion rise in value of U.S. stocks in just three months has astounded prognosticators, while many strategists are busy updating their 2024 targets.

In commodities, gold rose slightly, but oil was little changed. Meanwhile, Bitcoin traded above $71,000. The largest digital currency has rallied almost 70% this year on strong demand for U.S. exchange-traded funds that hold the tokens.

This week’s main events:

China Caixin Manufacturing PMI, Monday
Indonesia CPI, Manufacturing PMI, Monday
Japan Tankan business sentiment, manufacturing PMI, Monday
Macau casino revenue, Monday
Pakistan Trade, CPI, Monday
Singapore house prices, Monday
Korean trade, manufacturing PMI, Monday
Taiwan Manufacturing PMI, Monday
Vietnam Manufacturing PMI, Monday
US construction spending, ISM manufacturing, Monday
Bank of Canada releases survey on economic outlook and consumer expectations on Monday
Eurozone S&P Global Manufacturing PMI, Tuesday
France S&P Global Manufacturing PMI, Tuesday
Germany S&P Global / BME Manufacturing PMI, CPI, Tuesday
India HSBC/S&P Global Manufacturing PMI, Tuesday
Mexico’s international reserves, Tuesday
Korean CPI, Tuesday
Spain unemployment rate, Tuesday
UK S&P Global/CIPS Manufacturing PMI, Tuesday
US factory orders, light vehicle sales, JOLTS job openings, Tuesday
Brazilian industrial production Wednesday
China Caixin releases PMI on Wednesday
Eurozone CPI, unemployment rate, Wednesday
Japanese services PMI, Wednesday
Hong Kong retail sales Wednesday
US ISM Service, Wednesday
Eurozone S&P Global Services PMI, PPI, Thursday
India releases PMI on Thursday
U.S. new jobless claims, trade, Thursday
Eurozone retail sales Friday
French industrial production, Friday
Order from German factory, Friday
Hong Kong PMI, Friday
India interest rate decision Friday
Japanese household expenditure, Friday
Philippine Consumer Price Index, Friday
Russian GDP, Friday
Singapore retail sales Friday
South Korea’s current account balance, Friday
U.S. unemployment rate, nonfarm payrolls, Friday