Stocks Rise, Dollar Slips Ahead of Inflation Data – Asia Market Wrap

Asian markets rallied on Tuesday, aiming for their second day of gains, as the dollar fell ahead of a series of inflation reports that are anticipated to affect global monetary policy.

The MSCI AC Asia Pacific index climbed, with Hong Kong stocks leading gains. The US and European equities futures markets remained solid. Investors considered the possibility of US interest rate reduction. Australia’s currency did well. The 10-year Treasury yield was unchanged.

This week, traders will be scrutinising new inflation data from Australia to Japan, the eurozone, and the United States. Bank of Japan Governor Kazuo Ueda and his deputy said that there is room for modest interest rate hikes given that the country has moved away from a 0% inflation target. Japan’s April producer prices exceeded expectations, rising 2.8% from the previous year.