Source: AFP
Asian markets rose on Monday, recouping some of last week’s losses as concerns in the Middle East eased while traders looked ahead to the release of key US inflation and corporate earnings data.
With Iran downplaying Israel’s reported attack on the country, which came days after a drone and missile attack by Tehran, tensions between the regional rivals eased.
While the situation remains tense, the lack of escalation over the weekend gave investors a chance to recoup stocks and helped lower oil.
The gains came despite a largely negative lead from Wall Street, where the Nasdaq fell more than two percent on strong selling in tech giants including Amazon, Apple and Netflix.
Investors are now turning their eyes to the personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, due on Friday.
![](https://images.yen.com.gh/images/d7166d68f5f4fd8b.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/d7166d68f5f4fd8b.jpg?impolicy=cropped-image&imwidth=256)
Read also
Taiwanese chip giant TSMC’s earnings rise on artificial intelligence demand
The measure could play an important role in the central bank’s interest rate decision-making and comes after a third consecutive month of the highest-forecast consumer price index reading.
Disappointing CPI data has dampened hopes for a rate cut in June, while traders have scaled back their outlook on how much the Fed will do this year.
The PCE report is followed by the bank’s policy announcement next week, which will be watched for clues about its next step.
Several officials have played down expectations for cuts, citing sticky inflation as well as a still-strong economy and labor market.
Chicago Fed President Austan Goolsbee said last week that the battle against rising rates was over.
“Right now, it makes sense to wait and get more clarity before we move forward,” he said, warning that bringing inflation back to the bank’s two percent target would likely take longer than first thought.
![](https://images.yen.com.gh/images/367f6f541266ab5d.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/367f6f541266ab5d.jpg?impolicy=cropped-image&imwidth=256)
Read also
Markets rise as traders weigh the outlook for US interest rates
Earnings from major companies such as Google parent Alphabet, Tesla and Microsoft are also in play this week, with investors hoping for strong reports to support the stock’s recent rally.
Keys around 02:30 GMT
Tokyo – Nikkei 225: UP 0.7 percent at 37,334.97 (break)
Hong Kong – Hang Seng Index: UP 2.5 percent at 16,625.93
Shanghai – Composite: UP 0.2 percent to 3,072.00
Dollar/yen: UP to 154.68 from 154.64 yen on Friday
EUR/USD: UP at $1.0667 from $1.0658
GBP/USD: UP at $1.2388 from $1.2373
Euro/pound: UP at 86.13 pence from 86.11 pence
West Texas Intermediate: DOWN 0.8% to $81.58 a barrel
North Sea Brent crude: DOWN 0.8% at $86.62 a barrel
New York – Dow: UP 0.6 percent at 37,986.40 (close)
London – FTSE 100: UP 0.2 per cent at 7,895.85 (close)
Source: AFP