Source: AFP
Asian markets were mixed on Monday after data showed a slight rise in US inflation, but Federal Reserve chief Jerome Powell said the reading was “in line with expectations”.
Traders were also cheered by a big jump in Chinese factory activity that fueled hopes that the world’s number two economy may have bottomed out.
The developments came after the Dow and S&P 500 fell to record lows on Thursday, with the latter posting its best first quarter since 2019.
Long-awaited data on the personal consumption expenditures (PCE) index — the Fed’s preferred gauge of inflation — showed a small annual increase in March compared with February, although the core reading eased slightly.
Powell said the report “was roughly in line with our expectations” and that policymakers were on track to meet their long-term inflation target of 2 percent.
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He said that while recent inflation data was higher than the Fed would have liked, February’s data was “certainly closer to what we want to see.”
The data appeared to have little effect on traders’ expectations of a rate cut in June, but Powell warned they were unlikely to fall to levels seen after the 2008 global financial crisis.
Friday’s news followed a surprise upward revision Thursday to fourth-quarter U.S. economic growth that some observers said could complicate the Fed’s plans to cut borrowing costs.
In early Asian trade, Seoul, Singapore, Manila rose, while losses occurred in Taipei and Jakarta.
Hong Kong, Sydney and Wellington remained closed for Easter.
Shanghai jumped around one percent as traders welcomed news that China’s manufacturing grew for the first time in half a year, giving leaders a boost as they scramble to boost the struggling economy.
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The 50.8 reading in March was the first expansion since September and was well above forecasts.
“The industrial sector appears to be resilient, partly helped by strong exports,” said Zhang Zhiwei at Pinpoint Asset Management.
“If fiscal spending picks up and exports remain strong, economic momentum may improve.”
But Tokyo sank more than one percent as the Bank of Japan’s closely watched Tankan survey showed confidence among Japan’s biggest manufacturers slipped in the first quarter, having risen for three straight quarters.
The yen strengthened slightly, having stabilized at the end of last week after hitting a 34-year low against the dollar on Wednesday.
Keys around 02:30 GMT
Tokyo – Nikkei 225: Down 1.5 percent at 39,765.22 (break)
Shanghai – Composite: UP 1.0 percent to 3,071.00
Hong Kong – Hang Seng Index: Closed for holidays
Dollar/yen: DOWN at 151.27 yen from 151.39 yen on Thursday
EUR/USD: DOWN to $1.0786 from $1.0789
![](https://images.yen.com.gh/images/8ed0acf8e879d041.jpg?impolicy=cropped-image&imwidth=256)
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GBP/USD: UP at $1.2629 from $1.2619
Euro/pound: DOWN to 85.42 pence from 85.47 pence
West Texas Intermediate: UP 0.3 percent to $83.45 a barrel
North Sea Brent crude: UP 0.3 percent at $87.23 a barrel
New York – Dow: UP 0.1 percent at 39,807.37 (close)
London – FTSE 100: UP 0.3 per cent at 7,952.62 (close)
Source: AFP