Asian stocks eased on Wednesday in cautious trading ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve’s easing cycle, while the New Zealand dollar fell after the central bank softened its hawkish stance.
Most Asian currencies moved in a flat-to-low range on Wednesday, while the dollar strengthened as markets positioned for more cues on the U.S. economy and interest rates due later in the week.
Gold prices moved in a flat-to-low range on Wednesday, extending their recent run of muted performance as anxiety over higher-for-longer U.S. interest rates persisted ahead of key economic readings.
If you believe the options market, the world’s major currencies are going nowhere fast this year. A world of rapidly re-routed trade, political standoffs, pivotal elections, sparky inflation and widening growth gaps between G7 nations – it might reasonably be seen as an ideal incubator for volatility in major currencies.
A corporate governance makeover has helped fuel the revival of Japan’s once-moribund stock market. Now investors want to see if the change is for real. The Nikkei index shattered its all-time high last week, topping a level not seen since the December 1989 asset bubble – and continues to gain ground.
