Asian shares gain as U.S. inflation data not as bad as some feared

Hong Kong, April 13 (BNA): Asian stocks and US futures rose on Wednesday as US inflation numbers were not as high as markets had feared, causing US yields to halt their upward rally.


Stock market sentiment was restrained, although oil and other commodity prices rose after Russian President Vladimir Putin said that intermittent peace negotiations with Ukraine had “again returned to a standstill for us”, keeping the euro stuck at a five-week low.


Much weaker-than-expected import data from China also weighed on expectations, although it added to views that Beijing will have to ease policy again soon, Reuters reports.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, led by Korea’s Kospi, which rose 1.5%. Japan’s Nikkei index jumped 1.97%.


S&P500 futures rose 0.67% and Nasdaq futures gained 0.65% in Asian trade, but EUROSTOXX 50 futures lost 0.2%, weighed down by Putin’s comments.


Data published on Tuesday showed that monthly US consumer prices rose by their most in 16-1/2 years in March as the war in Ukraine boosted the cost of gasoline to record levels, bolstering the case for a 50 basis point Fed rate hike. Federal. next month.

However, monthly core inflation pressures eased as commodity prices, excluding food and energy, fell by the most in two years.


The data sent US yields lower on Tuesday, snapping seven straight sessions of gains, although they recovered a bit of strength late in the day and into Wednesday’s trading.


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The yield on the 10-year Treasury was 2.7462%, compared to a more than three-year high of 2.836%, before the inflation data.

The two-year yield was 2.3973%.

The moves in yields “give an indication of statements that US inflation has likely peaked or is very close to it,” said Clara Cheung, strategist at JPMorgan Asset Management.

“While this is unlikely to change the Fed’s course from a 50 basis point hike in May, if inflation continues on that path, there will be less pressure on them to be overly aggressive in the second half of the year.”

“However, stock markets pared gains as oil rose again above $100 a barrel as progress in peace talks between Russia and Ukraine stalled and China began to reopen Shanghai very gradually.”

Brent crude briefly fell below $100 earlier this week, but rose sharply on Tuesday, largely keeping its gains on Wednesday.


Brent crude futures rose 0.1 percent to $104.75 a barrel and US West Texas Intermediate settled at $100.7.


CBA commodity analysts attributed the gains in oil to Putin’s statement, which also caused a surge in agricultural commodities, as “the already small risks that Black Sea supplies could return to normal to any degree during the middle of the year are likely to drop to zero.”


Corn futures are back near an 11-year high.


Chinese stock markets were volatile after data showing Chinese export growth held well in March, but imports fell 0.1%, the first decline since August 2020 and far worse than analysts’ forecasts of 8% growth.

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China’s blue-chip stocks recovered from their previous losses to trade flat, lagging most of the region.


As for the currency markets, Putin’s comments were a major driver as the euro was held at a five-week low and commodity currencies found support due to higher oil prices. FRX

The New Zealand dollar had a busy day, rising to $0.6901 and falling to $0.6808 after the Reserve Bank of New Zealand raised interest rates by 50 basis points – the most aggressive rise in more than two decades – but tempered its rate expectations. It was last down 0.34% to 0.6823.

The Bank of Canada meets later on Wednesday and is also expected to deliver a sharp rally.

Spot gold rose 0.3% to $1,973.1 an ounce.

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