Asian Stocks Rise Slightly, US CPI Improves Sentiment
Asian stock markets posted limited gains at the opening of trading, as selling pressure from the past few sessions began to ease. Sentiment improved after US inflation data supported the view that the Federal Reserve is likely to cut interest rates this year.
In Japan, stocks opened higher after gross domestic product (GDP) data showed the economy grew slightly in the fourth quarter of 2025, reversing from a sharp contraction in the previous period. The yen's movement remained stable, reflecting a measured market response to a combination of domestic data and global policy direction.
Australian stocks also rose slightly at the start of trading, despite the Lunar New Year holiday, which impacted market activity in the region. Mainland China was closed all week, while US markets were closed on Monday for Presidents' Day, potentially limiting liquidity and volatility.
In other asset markets, gold and silver, both of which have rallied alongside stocks this year, fell slightly in early trading. The US dollar remained relatively stable against major currencies, Bitcoin held around $68,700 after fluctuating over the weekend, while oil prices remained largely unchanged.
This movement indicates a more conducive market environment after the S&P 500 index recorded consecutive weekly declines, fueled by uncertainty regarding the disruptive impact of AI technology on the business world. However, Friday's US CPI data, which rose 0.2% in January, the lowest increase since July, prompted the market to increase the probability of monetary easing, although some players believe the data is not enough to drastically change Fed policy.
The bond market responded positively, with 10-year and 2-year US Treasury yields falling by about five basis points on Friday. Market participants are still pricing in a rate cut in July, as well as a strong chance of a similar move in June. However, Chicago Fed President Austan Goolsbee emphasized that inflation has not yet returned to its 2% target and is currently "stuck" around 3%. In China, President Xi Jinping emphasized strengthening domestic demand, while Goldman Sachs raised its projection for China's current account surplus this year, amidst deteriorating earnings prospects for listed companies and geopolitical dynamics—including the Pentagon's listing incident, which briefly included several Chinese companies before being withdrawn without explanation. (asd)
Source: Newsmaker.id
