Asian Stocks Vary & Australian Dollar Gains Following CPI – Asia Market Wrap

As markets awaited additional catalysts, the benchmark for Asian stocks fluctuated between gains and losses. In response to inflation statistics that was faster than anticipated, the Australian dollar appreciated.

Equity indices in mainland China and Australia fell, while those in Japan, South Korea, and Taiwan increased. Following a Tuesday increase in the S&P 500 index thanks to a rally in Nvidia shares, US stock futures saw no movement in Asian trade.

The inflation data indicated that price pressures are still persistently high, which strengthened the argument for the central bank to keep raising interest rates. As a result, Australia’s dollar and bond yields increased. The psychologically significant threshold of 160 per dollar, which the yen held close below, will probably increase concerns about intervention if it is breached.

Concerned about the weakening economy and anticipating further stimulus, investors flocked to fixed-income assets, causing China’s 10-year bond yield to drop to a level not seen in more than two decades.