“Asia markets brace for a turbulent week as investors anxiously await regional inflation data and South Korea’s growth figures, setting the stage for potential market downturns.”
Asia-Pacific markets are expected to decline this week due to upcoming inflation readings from various countries in the region. Singapore and Australia will release their September inflation figures, while Japan will release Tokyo’s inflation numbers. In Australia, the S&P/ASX 200 fell 0.93% on Monday morning. Japan’s Nikkei 225 is also set to open weaker. Hong Kong’s markets are closed for a holiday on Monday.
In the US, all three major indexes retreated on Friday as concerns about the economy grew due to a surge in the 10-year Treasury yield. The S&P 500 shed 1.26%, the Nasdaq Composite dropped 1.53%, and the Dow Jones Industrial Average lost 0.86%.
Cleveland Federal Reserve President Loretta Mester stated that interest rates are likely near their peak and may not be raised much more. She believes that the economy is at a holding point as the central bank assesses the effects of tightening financial conditions. Mester agrees with the Federal Open Market Committee’s estimate that another rate hike could come before the end of 2023.
Gold climbed to a three-month peak on Friday as fears of increasing conflict in the Middle East drove investors towards safe-haven assets. Gold is on track for a second straight weekly gain, up 2.5% so far this week. The VanEck Gold Miners ETF and several gold mining companies also experienced gains.
The S&P 500 slipped below its 200-day moving average for the first time since March 24, potentially signaling a negative trend in the market. High-grade bond funds in the US saw outflows of $2.41 billion, reversing the previous week’s inflows. High-yield bonds and global emerging market bonds also experienced outflows, while equity flows remained flat.
Overall, the Asia-Pacific markets are expected to face declines, and various factors such as inflation readings, interest rates, and the performance of gold and bonds will impact global markets.