- Asian indices are mixed as investors await US/China inflation data.
- Indian markets are closed on account of Muharram.
- Higher US NFP could conclude the downside pressure on the oil prices.
Markets in the Asian domain are displayed a mixed performance as Chinese indices are performing well ahead of inflation data while Japanese markets have declined. Asian equities are not displaying any decisive signals as investors are expecting persistent cost pressures globally.
At the press time, Japan’s Nikkei225 surrendered 1%, China A50 added 0.30%, and Hang Seng jumped 1%. Indian markets are closed on account of Muharram.
Chinese equities are aiming higher despite higher consensus for the Inflation rate. China’s Consumer Price Index (CPI) is expected to elevate to 2.9% vs. 2.5% released earlier. The Chinese economy is still trying to establish its foot after the resurgence of Covid-19 hit growth forecasts. Now, a higher consensus for price pressures may impact the overall demand and compel the People’s Bank of China (PBOC) to sound neutral on Lending Prime Rate (LPR).
This week, the show stopper event will be the US inflation, which is seen lower at 8.7%, from the prior release of 9.1%. No doubt, an occurrence of the same will be a sigh of relief for the Federal Reserve (Fed) as it will be a crucial exhaustion signal for the soaring inflation rate. Last week’s, upbeat US Nonfarm Payrolls (NFP) improved the stakes for the continuation of a higher inflation rate as a higher release of paychecks will accelerate the overall demand.
Meanwhile, oil prices are attempting to surpass the psychological resistance of $90.00 after remaining balance in the $86.37-90.00 range. Solid employment growth in the US warrants a continuation of investments by the US corporate players, which will bolster demand for oil ahead. This may conclude the downside risk in the oil prices and the asset may find its mojo.