Ahead of US inflation data, Asian markets struggle to gain traction.


Ahead of US inflation data, Asian markets struggle to gain traction.

Early Asian trade Tuesday saw investors tread gingerly as they awaited US inflation data that might help determine when the Federal Reserve begins to wind down its market-supporting monetary policy.

The S&

Experts are also watching China, where authorities have strengthened their grip over the tech sector as part of a broader regulatory crackdown on private businesses.

The main event this week is the release of US consumer price data on Tuesday, which comes just days after numbers revealed that the costs firms pay at the factory gate rose at a record pace last month due to a surge in demand as well as supply and labor shortages.

The Fed is under pressure to start unwinding its ultra-loose monetary policy as soon as November, according to the article.

The consumer price index is expected to rise above 5%, with economists warning that a figure much higher than that could push the central bank’s hand in order to keep inflation from spiraling out of control.

For the time being, traders will remain on the sidelines, according to Edward Moya of OANDA.

In a commentary, he noted, “Investors don’t want to build huge holdings before the inflation data because the risks are to the upside as Covid inflation continues to impair supply chains.”

“If inflation is higher than forecast, the taper deadline could be pushed back from December to November.”

Hong Kong, Shanghai, Sydney, Wellington, and Taipei were all down, while Tokyo, Singapore, Seoul, Manila, and Jakarta were all up.

Fears of another coronavirus outbreak in China have also shattered confidence, with scores of positive cases in Fujian province leading authorities to conduct mass tests and shut down public transportation in one county.

The discovery has sparked speculation that China’s government may reimpose strict lockdown measures to prevent the disease’s spread, a move that wreaked havoc on the country’s economy earlier this year when another outbreak occurred.

According to Tapas Strickland of National Australia Bank, “another round of lockdown limitations owing to China’s elimination policy threatens to further dampen momentum after unanticipated softness” in recent services and manufacturing statistics.

House Democrats in Washington outlined measures for comprehensive tax reform on Monday, including rolling back Trump-era tax cuts and hiking taxes on the rich. Brief News from Washington Newsday.


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