Asian market sentiment is expected to be cautious and nervous due to the strength of the U.S. dollar, rising bond yields, tightening financial conditions, and concerns over China's economy.
Asian markets are expected to follow the global trend of weakness in stocks, a buoyant dollar, elevated bond yields, and souring investor sentiment, with no major catalysts to change the current market condition.
Asian markets will be influenced by economic indicators, policy steps, and diplomatic signals from China, as well as reacting to the Jackson Hole speeches, purchasing managers index reports, GDP data, and inflation figures throughout the week, with investors desperate for signs of economic improvement as China's industrial profits continue to slump and authorities take measures to stimulate the capital market.
Asian stocks may face a volatile session as investors monitor U.S. economic data, a second China manufacturing PMI reading, and the U.S. employment report, with any indication of central bank leaders approaching the end of tightening likely to generate risk appetite.
Oil prices surge to the highest level in 10 months as Saudi Arabia and Russia extend production cuts, raising concerns about inflation and higher interest rates, while the resilient U.S. economy strengthens prospects for interest rate hikes; tensions escalate in the auto sector as contract negotiations with major automakers continue; GameStop CEO Ryan Cohen faces scrutiny from the SEC over stock trades; Apple's market value plummets due to concerns over China's ban on public workers using foreign-branded devices; semiconductor stocks weaken amid export restrictions on China; energy sector excels while industrials and utilities lag; upcoming key economic data to watch includes inflation rate, Producer Price Index, retail sales figures, and Michigan Consumer Sentiment data.
Asian markets are expected to be on the defensive due to sagging stocks and rising oil prices, as investors await U.S. inflation figures that will impact the Fed's rate decision; China's real estate sector is seen as the most likely source of a global systemic credit event.
Big Japanese manufacturers and the services sector in Japan are experiencing a decline in confidence, with concerns of a slowdown in China's economy affecting global and domestic growth, according to a Reuters poll. The weak sentiment in the business sector raises doubts about the ability of exports to drive economic recovery amid weak domestic demand. Many companies cited high input costs and weak demand as contributing factors, along with geopolitical risks and tensions between the US and China.
Asian markets are expected to finish the week strong due to positive movements in the U.S. and Europe, although the release of economic data from China may dampen the mood, as it includes indicators such as house prices, fixed asset investment, and unemployment. The Chinese government is aiming to support the economy, but doubts remain about reaching the 5% GDP growth target and trade relations with the West continue to deteriorate. However, if investors continue with the bullish momentum from Thursday, these concerns may be temporarily set aside.
Mixed economic reports and market volatility have raised concerns ahead of the Federal Reserve's policy rate meeting, with retail sales exceeding expectations but a decline in consumer sentiment and rising fuel prices signaling a potential weakening in consumer spending; the successful IPO of chip designer Arm Holdings has boosted investor sentiment, while the initiation of the autoworkers' strike has negatively impacted markets; all eyes will be on the Federal Reserve's meeting this week, with investors closely monitoring data for insights into future decisions.
Asian markets open with a decline, primarily driven by chip- and AI-related shares, while concerns about China's economy persist, disrupting the calm ahead of several central bank meetings this week.
China is expected to maintain its benchmark lending rates as oil prices rise and market sentiment is affected; meanwhile, the Federal Reserve's policy meeting, Japan's trade data, and the United Nations General Assembly will also influence Asian markets.
Asian equities trade lower as cautious sentiment persists due to lingering fears over China's property market crisis, while a dovish stance from the Bank of Japan boosts Japanese stocks; investors are awaiting economic data from Japan and the US.
Asian markets may be bolstered by Wall Street's performance, but concerns regarding the surging dollar, rising U.S. Treasury yields, and troubles in the Chinese property sector may dampen investor enthusiasm.
Asian investors enter the final trading day of a challenging quarter with improved sentiment following a rebound in global risk assets, while economic indicators from Japan and ongoing concerns over the Evergrande situation and China's manufacturing data loom in the background.
Asian markets may receive a boost after the US Congress reached a last-minute deal to prevent a partial federal government shutdown, although Chinese data indicating mixed levels of services and manufacturing activity could hinder the positive sentiment.
Japan's business sentiment improved in the third quarter, with big manufacturers' index rising to 9 and big non-manufacturers' index increasing to 27, indicating a strong economic revival and potential conditions for the Bank of Japan to phase out stimulus measures.
Asian markets are expected to open defensively following a volatile day in world markets, with a crushing selloff in U.S. Treasuries, political turmoil in Washington, and suspected currency market intervention from Japan.
Concerns surround the upcoming release of U.S. payrolls data and how hawkish the Federal Reserve needs to be, as global markets experience a period of calm following a tumultuous week that saw Treasury yields rise to 16-year highs, crude oil prices drop, equities decline, and the yen strengthen. Japanese government bond yields are also causing concern, as investor sentiment towards the Bank of Japan's stimulus remains low.
Investors in Asian markets are expected to be cautious as they focus on Chinese producer and consumer price inflation, which will indicate if wider deflationary pressures are cooling in the country's struggling economy.
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