(Bloomberg) — Asian equities were poised to open higher as Japan’s markets resumed trading after a holiday and ahead of US inflation data due later Tuesday.
Most Read from Bloomberg
Contracts for Japanese and Australian futures pointed to gains for stocks after the S&P 500 ended Monday little changed, while the tech-heavy Nasdaq 100 fell 0.4% after touching a record on Friday. Markets will be closed in China, Hong Kong, Taiwan and Vietnam for Lunar New Year holidays.
Japanese futures up 1.6% were helped along by a weaker yen. The currency was little changed Monday to trade around 149 per dollar, down from 140 at the start of the year. Recent softness reflects comments from Bank of Japan officials that the central bank will be in no hurry to exit supportive policy.
SoftBank Group Corp., one of Japan’s largest listed companies, will be in focus after further gains for Arm Holdings Plc, in which it holds a stake. Arm shares jumped 29.2% in New York trading Monday and have almost tripled since listing in September.
Strong demand for chips, bolstered by expectations the coming boom in artificial intelligence will be a boon for manufacturers, helped Nvidia Corp. rise Monday — and briefly surpass the market value of Amazon.com Inc.
Treasuries were broadly unchanged Monday with the yield on the 10-year up less than one basis point. Australian and New Zealand yields were also little changed in early Asian trading.
An index of the dollar remained steady, reflecting the calmness in Treasury markets, ahead of January’s US consumer price index report due later Tuesday. The report is expected to show the first reading below 3% for year-over-year headline inflation since March 2021, supporting the disinflation narrative that has helped equities rally in recent months.
“It’s important not to lose sight of the big picture, which is that continued disinflation should allow the central bank to start easing this year,” said Mark Haefele at UBS Global Wealth Management.
Federal Reserve Bank of Richmond President Thomas Barkin said one simmering risk to inflation falling back toward the central bank’s target comes from US businesses. Many have boosted profit margins by raising prices in recent years — a practice that may be difficult to amend and one that would provide upward pressure for inflation.
In Asia, data set for release includes Australian consumer and business confidence, Japan producer prices, and New Zealand inflation expectations.
Geopolitics remained in focus. The European Union proposed trade restrictions on about two dozen firms, including three based in China, accused of supporting Russia’s war efforts in Ukraine.
Bitcoin touched $50,000 for the first time since December 2021, aided by the record-breaking debut of US exchange-traded funds for the token.
West Texas Intermediate, the US oil price, rose Monday for a sixth session in a row. Morgan Stanley raised its year-end oil price forecast on signs of tighter supply. Gold eased slightly lower to trade at around $2,020 per ounce Monday.
Key Events this Week:
-
Germany ZEW survey expectations, Tuesday
-
US CPI, Tuesday
-
Eurozone industrial production, GDP, Wednesday
-
BOE Governor Andrew Bailey testifies to House of Lords economic affairs panel, Wednesday
-
Chicago Fed President Austan Goolsbee speaks, Wednesday
-
Fed Vice Chair for Supervision Michael Barr speaks, Wednesday
-
Japan GDP, industrial production, Thursday
-
US Empire manufacturing, initial jobless claims, industrial production, retail sales, business inventories, Thursday
-
ECB President Christine Lagarde speaks, Thursday
-
Atlanta Fed President Raphael Bostic speaks, Thursday
-
Fed Governor Christopher Waller speaks, Thursday
-
ECB chief economist Philip Lane speaks, Thursday
-
US housing starts, PPI, University of Michigan consumer sentiment, Friday
-
San Francisco Fed President Mary Daly speaks, Friday
-
Fed Vice Chair for Supervision Michael Barr speaks, Friday
-
ECB executive board member Isabel Schnabel speaks, Friday
Some of the main moves in markets:
Stocks
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.0773
-
The Japanese yen was little changed at 149.34 per dollar
-
The offshore yuan was little changed at 7.2149 per dollar
Cryptocurrencies
-
Bitcoin rose 0.5% to $50,072.27
-
Ether rose 1.1% to $2,661.2
Bonds
Commodities
This story was produced with the assistance of Bloomberg Automation.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
