Asian markets may face a mixed open on Thursday as concerns grow over potential interest rate cuts in the United States and abroad, while positive earnings from technology giant Nvidia could provide a boost to profits. Nvidia’s shares rose after-hours following better-than-expected first-quarter results and a forward stock split announcement. Investors will be closely watching Asian markets amid key events such as the Bank of Korea’s policy decision, PMI data from Australia and India, inflation figures from Singapore and Hong Kong, and Singapore’s first-quarter GDP report.
In Japan, bond yields are rising and the yen is weakening, putting pressure on Bank of Japan officials. US bond yields are also increasing, with Federal Reserve officials still expecting inflation to reach its target but acknowledging it may take longer than anticipated. Some market participants, like Goldman Sachs CEO David Solomon, believe the Fed may not cut rates at all this year.
The US-China trade war will come into focus in the lead up to the G7 meeting in Italy, where officials are expected to address China’s export strength. While the US is not asking its partners to impose tariffs on Chinese imports, it wants the G7 communiqué to address concerns about China’s industrial overcapacity.
Key events to watch on Thursday include the Bank of Korea’s monetary policy decision, CPI inflation data from Singapore and Hong Kong, and PMI data from Japan, Australia, and India. Overall, markets will be closely monitoring developments both domestically and globally for further direction.
In conclusion, Asian markets are facing a complex landscape with shifting interest rate expectations and geopolitical tensions. Positive earnings from Nvidia may provide a bright spot, but uncertainties around monetary policy and trade tensions could weigh on market sentiment. Investors will be closely monitoring key economic data releases and central bank decisions for insight into the direction of Asian markets in the coming days.
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