Asian stocks open lower as traders await US inflation data and Fed decision, uncertainty looms.

From CNBC TV18: 2024-06-11 21:28:05

Asian stocks opened lower as traders awaited US inflation data and the Federal Reserve decision. Equities slipped in Japan and Australia, while those in South Korea climbed. Chinese stocks are in focus after closing at a six-week low. Treasuries steadied after a strong $39 billion sale. Australian bonds nudged higher.

Market analysts anticipate a cautious start to trading as China releases May price data and the Biden administration considers restrictions on China’s chip technology access. With global central banks making rate decisions and the focus on US monetary policy, investors expect a “risk on” scenario for both inflation and the Fed decision.

Despite expectations that the Fed will keep borrowing costs steady, uncertainty looms around officials’ rate projections. Sentiment and positioning indicators suggest a possible short-term pullback in stock markets due to interest rate uncertainty. HSBC strategists recommend buying any dips as a tactical re-entry point.

Oil prices extended gains on shrinking US crude stockpiles. Traders also await the IEA report on the market outlook.



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