Asian stocks rise, but inflation concerns re-emerge

© Reuters.

From Gina Lee – Asia Pacific stocks were largely up on Monday morning, with volume modest due to the closure of two major markets in the region and re-emerging inflation concerns.

Chinese and Japanese markets are closed for holidays.

In Australia, the increase rose 0.14% until 10:30 p.m. (2:30 p.m. GMT) before the Reserve Bank of Australia surrendered on Tuesday. April, published earlier in the day, came in at 61.7, up from March’s 59.9.

South Korea was up 0.05% while Hong Kong was down 1.45%.

US Treasury yields were above 1.6% at the end of the last session. Inflation concerns are back in the spotlight as US economic data, including and released last week, suggests possible inflationary pressures and increased discussion of a possible withdrawal of central bank support.

Investors also fear central banks may curtail their programs to buy assets that have supported the recovery sooner than expected.

The US Federal Reserve’s president in Dallas said Friday that signs of excessive risk-taking suggest it is time to debate a reduction in bond purchases, in direct contrast to the current cautious policy of the central bank.

Kaplan is not currently holding a vote on the Rate Setting Committee, but investors will be paying particular attention to comments due later in the day from Federal Reserve Chairman Jerome Powell and other Fed policy makers later in the week.

On the data front, the US will be releasing more economic data during the week, including and in April. Nearly a million jobs are expected to be created during the month as Americans conduct their economic reviews and the U.S. economy continues its recovery from COVID. 19th

However, some investors pointed out that the US is still on the recovery path.

“Payrolls should see a further increase of nearly 1 million jobs, but that would still be 7.5 million below pre-COVID levels,” NAB said. Business director Tapas Strickland told Reuters.

“Powell recently stated that it would take a number of months to create about a million jobs per month to make the substantial advances needed to warrant a decrease in QE,” added Strickland.

Other investors also downplayed inflation fears and instead focused on the Fed’s next steps.

“Future interest rates will be determined by Fed expectations rather than inflation,” Raffaele Bertoni, head of debt markets for Gulf Investment Corp., told Bloomberg.

On the COVID-19 front, India continues to grapple with a virulent second wave of cases. The daily number of COVID-19 cases passed the 400,000 mark on Sunday before falling to 392,488 on Monday, according to the country’s Department of Health and Family Welfare.

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