Asian Stocks Mostly Gain After US Inflation Miss, ECB Draghi Eyed
ASIAN STOCKS TALKING POINTS:
- Most Asian stocks rose Friday on a day short of local economic cues
- Weaker US inflation seems to have reassured investors that the pace of rate hikes won’t accelerate
- The US Dollar edged back from its recent highs
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Most Asian stock markets traded higher into Friday’s close, following Wall Street gains in the previous session.
US consumer-price inflation data came in below expectations Thursday, knocking the Dollar but apparently providing equity investors with some assurance that the pace of interest rate rises from the Federal Reserve is at least unlikely to accelerate.
The Nikkei 225 ended up 1.16% with the Hang Seng and Kospi both higher as well. Australia’s ASX was down, but only by a whisker and the Shanghai Composite was more or less unchanged on the day as its close loomed.
Local currencies got some respite from the heavy battering they’ve received in recent weeks from a higher US Dollar, but the greenback nevertheless remained close to 18-month peaks against major rivals. AUD/USD for example remains well within its dominant downtrend, but has revisited the top of its recent range.
The Philippine Peso slipped despite a rate hike from its central bank. The move had been well-glagged, however and the market clearly does not think many more are in the pipeline.
Still to come Friday are Canadian employment data, US import prices and consumer sentiment numbers from the University of Michigan. European Central Bank President Mario Draghi will speak, in Florence.
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--- Written by David Cottle, DailyFX Research
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.