Selangor Journal
A woman walks past an electric board showing Nikkei index and exchange rate between the Japanese Yen and US dollars outside a brokerage at a business district in Tokyo, Japan on January 4, 2023. — Picture by REUTERS

Asian shares drift after rally, Wall Street reopen in focus

SYDNEY, May 28 — Asian shares held a mixed tone today after rallying the previous session, as rising bets of an imminent European rate cut helped risk appetite ahead of some key inflation data.

A slew of European Central Bank officials said overnight the ECB has room to cut interest rates as inflation slows, underscoring expectations for a rate cut on June 6. With debate now shifting to subsequent moves, markets have fully priced in two rates cuts by October this year.

That helped Wall Street stock futures firm ahead of the reopening of US markets after a public holiday. S&P 500 futures rose 0.1 per cent and Nasdaq futures gained 0.2 per cent before a line-up of Federal Reserve speakers later in the day for the latest guidance on rate outlook.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, thanks to a 0.7 per cent gain in Hong Kong’s Hang Seng index, after gaining 0.9 per cent on Monday.

Japan’s Nikkei, on the other hand, slipped 0.3 per cent, reversing some of the 0.7 per cent advance a day ago.

“We’re heading into the northern hemisphere summer season. Traditionally that’s a time when markets just tend to get in that drift mode. We’ve got through earnings season,” said Tony Sycamore, an analyst at IG.

“To find a driver it’s got to be something from out of left field and in lieu of that, generally we see markets drift higher and I think that’s what we’re seeing at the moment.”

Chinese blue chips lost 0.1 per cent after firming 1 per cent a day earlier as tech shares surged on Beijing’s further commitment to invest in its semiconductor industry.

The big risk events this week are not due until Friday when US figures on core personal consumption expenditures (PCE) — the Federal Reserve’s preferred measure of inflation — and euro zone inflation data will set the trading tone.

— Reuters

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