Asian markets mixed ahead of US inflation data, Fed decision

AFP :
Asian markets diverged Monday as investors awaited key US data and a Federal Reserve policy decision after labour figures last week suggested the US central bank was on course to deliver a soft landing for the economy while reining in inflation.

A forecast-beating read on jobs Friday — and a pick-up in consumer sentiment — tempered expectations for interest rate cuts in the new year but were not enough to jolt confidence that decision-makers have finished with their tightening cycle.

Readings on consumer prices and retail sales are due this week, as is the Fed’s meeting and boss Jerome Powell’s statement, which will be parsed for indications of officials’ plans.

Investors will also be keeping an eye on decisions by the European Central Bank and Bank of England this week.

“The run of data that preceded Friday’s non-farm payrolls data has mostly been softer, and equity markets appeared willing to overlook NFP as an outlier,” said IG Australia’s Tony Sycamore.

“However, the equity market is unlikely to be so forgiving if it gets another fright this week from either CPI, the (policy) meeting, or retail sales,” he said, referring to the consumer price index.