financetom
World
financetom
/
World
/
MORNING BID ASIA-Rate decisions roll in, markets hold firm at highs
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
MORNING BID ASIA-Rate decisions roll in, markets hold firm at highs
Feb 18, 2025 2:16 PM

Feb 19 (Reuters) - A look at the day ahead in Asian

markets.

Two interest rate decisions and Chinese house prices top the

Asia-Pacific calendar on Wednesday, with markets still pretty

buoyant even as investors navigate the increasingly powerful

crosscurrents of global trade and geopolitical uncertainty.

Wall Street's big three indices were little-changed on

Tuesday but the S&P 500 eked out a new closing high, as did the

MSCI World index.

Markets are in a holding pattern, taking a 'wait and see'

approach to tariffs and potential Russia-Ukraine truce. When it

comes to U.S. monetary policy, the Federal Reserve is adopting a

similar stance too.

The Reserve Bank of New Zealand on Wednesday is expected to lop

another 50 basis points off borrowing costs to counter slowing

growth, while Bank Indonesia is set to hold rates to shore up

the weak exchange rate, according to Reuters polls.

These decisions come a day after the Reserve Bank of Australia

cut rates for the first time in four years but warned it was too

early to declare victory over inflation and signaled caution

over the prospects of further easing.

Like all their G10 FX peers, the Australian and New Zealand

dollars have risen against the U.S. dollar this year although

the 'kiwi' has cooled a bit this week ahead of the RBNZ

decision. Indonesia's rupiah is flat this year, making it one of

the worst performers among key emerging currencies.

Despite the uncertainty around U.S. President Donald Trump's

tariffs and protectionist trade agenda, emerging market

sentiment remains upbeat. Investors seem willing to stay in

riskier assets, which have been winning trades so far this year,

for longer than had perhaps been expected.

Emerging market debt and Chinese equities are two areas have

performed well this year, and attracted huge inflows in January,

Institute of International Finance figures showed on Tuesday.

Optimism on Chinese stocks, especially tech, is spreading as

investors bet that the emergence of AI startup DeepSeek and

President Xi Jinping's meeting with the country's tech

entrepreneurs mark a bright, new dawn for the sector.

Hedge funds are pouring money in, and global investment

banks are upgrading their outlooks. The danger is bullish

sentiment and positions get too stretched, but the market

doesn't appear to be at that stage yet.

Still, tense U.S.-Sino relations and escalating global trade

tensions cannot be ignored, and on Tuesday China condemned

Washington at the World Trade Organization, warning that its

tariffs could upend world trade and risk global recession.

Meanwhile, the rise in Japanese Government Bond yields shows

no sign of slowing, as markets bet on the Bank of Japan raising

rates again this year. Yields are the highest since 2008, and

have now risen 13 out of the last 14 trading sessions.

Here are key developments that could provide more direction

to Asian markets on Wednesday:

- New Zealand, Indonesia rate decisions

- China house prices (January)

- HSBC earnings (full-year 2024)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
GLOBAL MARKETS-Stocks add to recent losses; yen flat after 2 1/2-mo high vs dollar
GLOBAL MARKETS-Stocks add to recent losses; yen flat after 2 1/2-mo high vs dollar
Jul 25, 2024
* S&P 500, Nasdaq end lower; Dow ends higher * US oil prices settle higher * IBM ( IBM ) shares jump following results (Updates to 4:30 p.m. ET) By Caroline Valetkevitch NEW YORK, July 25 (Reuters) - World stock indexes mostly fell in choppy trading Thursday, adding to losses after a tech-led selloff in the previous session, while the...
MORNING BID ASIA-Stocks not out of the woods after trying to recover
MORNING BID ASIA-Stocks not out of the woods after trying to recover
Jul 25, 2024
July 26 (Reuters) - - A look at the day ahead in Asian markets by Alden Bentley in New York. U.S. stock markets tried to steady from their epic one-day shakeout before giving it up late in the day, amid jitters about AI earnings potential that deflated megacaps, and, thus, the whole market on Wednesday. The S&P 500 and Nasdaq...
GLOBAL MARKETS-Yen steady, Asian stocks weak as wild week winds down
GLOBAL MARKETS-Yen steady, Asian stocks weak as wild week winds down
Jul 25, 2024
TOKYO, July 26 (Reuters) - The yen stabilized near a 12-week high against the dollar on Friday while Asia-Pacific equity markets remained on the back foot a day after their worst session since mid-April. Regional stocks took their cues from Wall Street, where the S&P 500 and tech-heavy Nasdaq slipped further after Wednesday's frenetic selling. MSCI's broadest index of Asia-Pacific...
Morning Bid: Stocks not out of the woods after trying to recover
Morning Bid: Stocks not out of the woods after trying to recover
Jul 25, 2024
(Reuters) - - A look at the day ahead in Asian markets by Alden Bentley in New York. U.S. stock markets tried to steady from their epic one-day shakeout before giving it up late in the day, amid jitters about AI earnings potential that deflated megacaps, and, thus, the whole market on Wednesday. The S&P 500 and Nasdaq rallied during...
Copyright 2023-2025 - www.financetom.com All Rights Reserved