Asia Stocks Tread Water Before CPI as HK Rallies – Asia Market Wrap

Asian markets edged slightly higher in range-bound trading ahead of important inflation data that may give new signals about the Federal Reserve’s policy stance.

Australian shares rose, and a barometer of Hong Kong-listed Chinese companies increased for the third day, bringing its return from a recent low to almost 20%. Benchmarks in Japan and mainland China declined, with trading in the region slowed by holidays in nations such as South Korea. US stock futures remained largely unchanged.

Global markets are failing to capitalise on their greatest first-quarter performance since 2019, as investors limit their expectations for Fed rate reduction. US economic statistics has remained strong, with authorities arguing against the necessity for easing.

Treasuries held steady after rising on Tuesday. Ten-year rates declined from their highs this year, indicating that short exposure is being unwound ahead of Wednesday’s US inflation estimate. The dollar was trading mixed versus the majority of its major counterparts.