Yen surges & US CPI Gain Prominence as Stocks Decline – Asia Market Wrap

Asian markets fell Wednesday, as bonds climbed on economic fears ahead of a US inflation data. The yen rose after a BoJ official suggested more interest rate hikes.

A gauge of the region’s equities declined for the third straight session, with benchmarks in Japan and Hong Kong leading falls. Futures for US stocks fell. Global economic concerns reappeared as oil prices remained below $70 and Treasury yields dipped ahead of the US consumer price index on Wednesday and the Fed policy meeting next week.

The Yen rose to its highest level versus the Dollar since January as BoJ policymaker Nakagawa stated that the central bank will continue to alter the degree of easing. The majority of experts polled predicted that the central bank would wait until December or January to raise interest rates again, with the next decision coming next week. Emerging market currencies advanced against a weaker Dollar.

The grim forecast for the Chinese economy, as well as concerns that the Fed has delayed too long to loosen monetary policy, continue to dominate investor mood. Traders forecast at least one significant Fed rate decrease this year ahead of the CPI report, which is expected to reflect another month of moderate growth. Australian bonds followed the movement in Treasuries.

In a presidential debate between Vice President Harris and former President Trump, the issues covered were their economic policies, US-China ties, and immigration.