ASIA-PAC EQUITY WRAP: Asian stocks were mostly higher after the softer-than-expected US PPI data supported the case for just one more Fed rate hike

Analysis details (05:58)

Asia-Pac stocks traded mostly higher after the positive lead from Wall St where yields continued to decline as PPI data followed suit to the softer consumer inflation and supported the case for just one more Fed rate hike. ASX 200 (+0.8%) was firmer with gains in the index led by the tech sector after similar outperformance of US counterparts amid a decline in yields, while the announcement that RBA Deputy Governor Bullock will take over from Governor Lowe in September had little effect on markets and was largely seen as policy continuation. Nikkei 225 (Flat) swung between gains and losses with headwinds from JPY strength and speculation that the BoJ could raise its inflation forecast above the 2% target at its meeting this month, which could pave the way for policy normalisation, while former BoJ Director Hayakawa expects the BoJ to tweak yield curve control at the upcoming meeting by potentially raising the 10yr yield ceiling to 1.0%. Hang Seng (+0.2%) and Shanghai Comp. (+0.3%) were positive albeit with gains capped despite the renewed support pledges by the PBoC to keep credit growth appropriate, as well as step up counter-cyclical adjustments and support for key sectors.

14 Jul 2023 - 05:56- Fixed IncomeData- Source: Newsquawk