Asia Sets Record, US Yields Rise: CPI Markets Await
Asian stocks rallied for a fifth straight day on Wednesday, with the MSCI Asia Pacific Index rising about 0.4% to hit another record. Asia's performance this year has been increasingly outperforming Wall Street, supported by relatively cheaper valuations and perceived more solid growth prospects, while Japanese markets also rallied after reopening after a holiday.
In the bond market, US Treasuries weakened, and the 10-year yield rose to around 4.18% after a strong US jobs report led market participants to scale back bets on an imminent Fed rate cut. Data showed January's Nonfarm Payrolls rose by 130,000 and the poverty rate fell to 4.3%, triggering adjusted expectations that the next cut might occur around mid-year.
Market focus now turns to Friday's US inflation (CPI) release, which will determine whether the "higher rates for longer" narrative strengthens or begins to heat up. On the other hand, oil prices rose as Middle East geopolitical risks increased the premium, while the dollar remained stable and the yen strengthened. (asd)
Source: Newsmaker.id
