Asian Markets Set for Declines as Fed Signals No Rush on Rate Cuts
Asian equity markets are poised for declines Thursday, mirroring subdued trading on Wall Street after the Federal Reserve's meeting minutes indicated no immediate intentions to slash interest rates.
Market Sentiment
* Japanese, Hong Kong, and Australian equity index futures all fell.
* U.S. stocks closed mixed Wednesday, with the S&P 500 reaching a new high while the Nasdaq 100 remained nearly unchanged.
* Defensive sectors outperformed, reflecting investor caution, while Treasuries advanced and the U.S. 10-year yield dipped.
Fed Minutes
* The Fed's minutes revealed that officials remain hesitant to reduce rates amidst persistent inflation and economic uncertainty.
* Discussion included pausing or slowing quantitative tightening until the U.S. debt ceiling issue is resolved.
Geopolitical Factors
* U.S. threats of tariffs on cars, chips, and drug imports weigh on sentiment.
Upcoming Data and Events
Thursday:
* Taiwan export orders
* Hong Kong and China inflation data
* China one-year and five-year loan prime rates
* China one-year medium-term lending facility data
* Alibaba Group Holding's earnings presentation
Friday:
* Eurozone HCOB manufacturing and services PMI
* U.S. S&P Global manufacturing and services PMI
* U.S. existing home sales
* U.S. consumer sentiment
Individual Company News
* Rio Tinto reported a decline in annual profit due to weakened Chinese demand.
* Quantum-computing shares surged in the U.S. following Microsoft's new chip announcement.
* Homebuilder stocks fell after Toll Brothers' results and construction data indicated potential turbulence in the residential real estate market.
Market Movements
Equities:
* Hang Seng futures: -0.8%
* S&P/ASX 200 futures: -0.5%
Currencies:
* Bloomberg Dollar Spot Index: +0.2%
* Euro: $1.0426
* Japanese yen: 151.43 per dollar
* Offshore yuan: 7.2809 per dollar
* Australian dollar: $0.6345
Cryptocurrencies:
* Bitcoin: $96,390.67
* Ether: $2,711.87
Commodities:
* Gold: unchanged