Asian stock markets experienced a decline on Thursday as major economies remained cautious about monetary easing amidst persistent inflation concerns. The MSCI index of Asia-Pacific shares outside Japan fell by 0.57%, reflecting widespread investor uncertainty. Similarly, the S&P/ASX 200 index in Australia saw a 0.8% drop, further exacerbated by a downturn in commodity prices.
Investors are adjusting their forecasts for global interest rate cuts this year following hawkish signals from the Federal Reserve and troubling inflation statistics from the UK and New Zealand. Despite geopolitical tensions arising from China’s military drills around Taiwan after President Lai Ching-te’s inauguration, Taiwan’s stock market posted a modest gain of 0.3%.
In the U.S., a surge in tech stocks was noted after Nvidia’s revenue forecast surpassed expectations, leading to a significant 5.9% rise in its shares post-market. This optimistic outlook lifted futures for both the S&P 500 and Nasdaq.
Meanwhile, Japan’s Nikkei index benefited from a weakening yen, climbing by 0.6%. Currency markets saw the British pound and the New Zealand dollar maintaining strength, hovering near two-month highs. Recent data from Britain indicated that inflation is subsiding slower than anticipated, while the Reserve Bank of New Zealand hinted that rate cuts might not occur until 2025. This data reinforces the view that central banks around the world may maintain stringent monetary policies for an extended period, impacting global financial markets, including Asian stock markets.
