SYDNEY, Sept 12 (Askume) – Asian shares rose on Thursday, led by technology stocks on Wall Street, while U.S.
Investors are currently waiting for the European Central Bank’s policy decision tonight, a rate cut is almost certain , but the question is whether there will be a rate cut in October and December.
Europe is expected to post solid gains ahead of the ECB risk event, with EUROSTOXX 50 futures up 1.3% and FTSE futures up 1.1%. Nasdaq futures were also higher, up 0.3%.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 1.5%. The Nikkei Share Average (.N225) rose 3.3%, benefiting from a weaker yen, which has fallen from a 2024 high of $140.71 against the dollar.
The dollar was last seen rising 0.3% against the yen at 142.75 yen, under pressure after hawkish comments from a senior Bank of Japan official calling for a rate hike of at least 1%.
Overnight, US data showed the core consumer price index (CPI) rose 0.28% in August, compared with a 0.2% rise expected. This was enough to give the market direction, effectively eliminating the possibility of the Fed cutting interest rates by half a percentage point next week, which was only a 15% probability.
“We were hoping for an answer on Friday that would help settle the debate over a 25 basis point versus a 50 basis point cut by the Fed, but now it appears the market has made up its mind.”
“We are now considering a 25 basis point rate cut in September, but due to the weak US non-farm payrolls report on October 4, we are also open to considering a 50 basis point rate cut in the November FOMC meeting. The decision will be entirely determined by the market.
Disappointment from core inflation data weighed on Wall Street, but tech stocks again came to the rescue, with artificial intelligence darling Nvidia (NVDA.O) gaining 8% on reports that the US government will provide the company with a loan Saudi Arabia is considering.
Regional stock markets dominated by technology stocks also followed suit, with Taiwan (.TWII) gaining 2.8% and South Korea (.KS11) rising 1.7%.
Chinese stocks fell, while Hong Kong’s Hang Seng Index (HIS) rose 1.2%.
In the foreign exchange market, the dollar was near a four-week high against the euro, with the euro falling to $1.1015, not far from Wednesday’s low of $1.1002, its lowest since Aug. 16.
Shorter-dated U.S. Treasuries sold off overnight. The two-year note yield rose 1 basis point to 3.66% after rising 4 basis points overnight, while the 10-year note yield was at 3.6665%.
This has caused the 2-10 year yield curve to flatten slightly and remain positive by less than 1 basis point.
Oil prices continued to rise amid concerns that Hurricane Francine could cause prolonged production shutdowns in the United States.
Brent crude futures rose 0.7% to $71.09 a barrel after rising 2% overnight. It also found support at $68.69, its lowest level in nearly three years.
Gold rose 0.2% to $2,517.89 per ounce, slightly below its all-time high of $2,531.60.
