AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_06_24_2025_03_45_59_650550.jpg)
US equities experienced a rally, setting a positive tone for the Asian session with significant gains across major indexes.
China’s slowing trade data and soft inflation figures highlight economic challenges, raising questions about potential future stimulus measures.
Investors are anticipating Wednesday’s US CPI report, which may influence discussions on potential Federal Reserve rate adjustments amidst steady inflation expectations.
US Equity Markets Set a Positive Tone
On Monday, September 9, US equity markets had a robust performance. The Nasdaq Composite Index climbed by 1.16%, with the Dow Jones Industrial Average and the S&P 500 also advancing by 1.20% and 1.16%, respectively. This positive momentum carried over into the Asian trading session on Tuesday.
Steady Consumer Inflation Expectations Amid Dip Buying
Consumer inflation expectations remained steady at 3% in August, but this had a limited impact on market sentiment as investors engaged in dip buying. The forthcoming US CPI report is anticipated to have a significant effect on market dynamics, with speculation around possible Federal Reserve rate adjustments.
Fed’s Rate Path Under Scrutiny
Parker Ross, Chief Economist at Arch Capital Global, commented on recent US economic indicators and the Fed’s potential rate path. He noted that despite recent soft data and a lackluster jobs report, it is unlikely to prompt an aggressive rate-cutting cycle by the Fed. Ross indicated that unless jobless claims spike, the data does not support a substantial rate cut.
Aussie Sentiment Wanes
On Tuesday, September 10, business and consumer sentiment figures pointed to potential deterioration in the macroeconomic environment. The NAB Business Confidence Index fell from +1 in July to -4 in August, indicating possible adverse effects on the Australian labor market and consumer confidence. The Westpac Consumer Confidence Index also declined by 0.5% in September following an increase in August. This downward trend could impact private consumption, which constitutes a significant portion of the Australian economy, potentially influencing the Reserve Bank of Australia’s future monetary policy.
Weak China Trade Data Signals Economic Strain
China’s trade data showed weaker-than-expected results, with exports increasing by 4.6% year-on-year in August, down from 7.0% in July, and imports rising by 2.5% year-on-year, down from 7.2% in July. These figures may prompt Beijing to consider further stimulus measures to support the economy.
Hang Seng Index and Mainland China Indexes Diverge
The Hang Seng Index gained 0.35% on Tuesday, driven by strength in the tech sector. The Hang Seng Tech Index (HSTECH) also rose by 0.35%, with Alibaba and Baidu seeing notable increases. However, concerns about the Chinese economy impacted the real estate sector, causing the Hang Seng Mainland Properties Index to fall by 3.00%. Conversely, Mainland China markets opened lower, with the CSI 300 and Shanghai Composite Indexes declining by 0.38% and 0.32%, respectively.
Nikkei Index Climbs on Weaker Yen and Positive US Session
The Nikkei Index rose by 0.08% on Tuesday, supported by a stronger USD/JPY and positive performance in US equity markets. Tokyo Electron and Sony Corp. saw notable gains, although investor sentiment remained cautious ahead of the US CPI report.
ASX 200 Tracks US Market Gains
The ASX 200 Index advanced by 0.61% on Monday, with broad-based gains across sectors including banking, mining, oil, and gold. Major contributors included the Commonwealth Bank of Australia and Rio Tinto Ltd. Investors should remain vigilant with central bank updates and market news as the US CPI report approaches, impacting trading strategies and market positions.
