Asian shares edgy amid inflation fears, dollar at one-year high

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  • DLR against yen near 3-year high; 1-year high vs. basket of peers
  • Oil prices fall, but still near multi-year high
  • Investors waiting for Chinese trade, US CPI data
  • Most Asian stock markets soften, Hong Kong closed for storm
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HONG KONG, Oct 13 (Businesshala) – Asian stocks were up on Wednesday as worries about rising electricity prices fueled inflation and fueled hopes that the United States will lift its emergency bond buying program to a one-year high. Will keep on .

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.1% in early trade, having held steady after falling more than 1% a day earlier, marking its worst daily performance in three weeks.

The moves remained muted in most markets. Chinese blue chips (.CSI300) were flat, Australia (.AXJO) gained 0.06%, while Japan’s Nikkei (.N225) lost 0.2%.

Hong Kong’s stock market was closed in the morning due to thunderstorms.

Contributing to the uneasy mood, investors await a data release to be published on Wednesday, including Chinese trade data, US consumer price inflation data and minutes of the US Federal Reserve’s September policy meeting.

The imminent start of the company’s earnings season also deterred some investors from making big bets.

“This week, inflation seems to be outpacing everything else, because it somehow pushes the Fed’s expectations and it’s just so impressive,” said Stephen Hofer, LGT’s chief investment strategist in Asia Pacific.

“This earnings season is also important because earnings were very strong in the last one, especially in the US, partly because of the base effect. The third quarter could be a little more standard,” he said.

The US Federal Reserve is getting closer to launching its pandemic relief massive bond buying program, a decision compounded by growing fears around the world that rising energy costs will stoke inflation while undermining the economic recovery.

Oil prices are currently near multi-year highs but were stable in Asian morning trading.

Brent crude fell 0.29% to $83.18 a barrel, from Monday’s three-year high of $84.6, while US crude fell 0.2% to $80.48 from Monday’s seven-year high of $82.18.

Despite concerns about rising inflation, there is growing optimism about the state of the economic recovery. Three US Federal Reserve policymakers said on Tuesday that the US economy has recovered enough for the central bank to withdraw its support from the crisis.

As a result, stocks on Wall Street slipped overnight. The Dow Jones Industrial Average (.DJI) fell 0.34%, the S&P 500 (.SPX) fell 0.24%, and the Nasdaq Composite (.IXIC) fell 0.14%.

Less likely also meant the dollar was stronger, falling below one-year highs compared to other majors that had hit the previous day.

The dollar index was at 94.413, just below Tuesday’s high of 94.563, the highest level since September 2020.

It was particularly strong against the yen, seeing a near three-year low on Monday, with a dollar buying 113.39 yen. As Japan buys most of its oil from overseas, the one-week yen means it is struggling even more with higher prices.

The spot price rose 0.04% to $1,760 an ounce in the middle of the month, with gold holding steady ahead of US data.

Editing by Lincoln Feast.

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