After a recent selloff driven by inflation concerns, Asia-Pacific markets are gearing up for a potential rebound. One key factor to watch will be the trade numbers for China, set to be released later in the day. Economists are forecasting a 2.3% year-on-year drop in exports, following a disappointing inflation report from the country.
In addition to China’s trade numbers, investors will also be keeping an eye on Singapore’s first-quarter gross domestic product figures. Interestingly, the country’s central bank uses exchange rate settings for monetary policy, in contrast to benchmark interest rates used in other countries. The performance of Taylor Swift’s Eras Tour in March, dubbed “Swiftonomics,” could have a positive impact on GDP numbers.
Market Outlook for Other Countries
South Korea saw a rise in unemployment to 2.8% in March, while attention is now turning to the Bank of Korea’s upcoming rate decision. In Australia, futures are pointing to a stronger open for the S&P/ASX 200 index, signaling a potential recovery from recent losses. Japan’s Nikkei 225 is also expected to rebound, supported by futures contracts showing gains compared to the previous close. However, there are concerns about a weaker open for Hong Kong’s Hang Seng index, based on futures data.
Overnight in the U.S., tech shares lifted both the S&P 500 and Nasdaq Composite into positive territory, with gains of 0.74% and 1.68%, respectively. However, the Dow Jones Industrial Average saw a slight decline. Notable performers included Nvidia, Amazon, Alphabet, and Apple, with the latter experiencing its best day in years following reports of a transition to AI-focused chips for Mac products.
Asia-Pacific markets are bracing for a potential rebound after recent volatility driven by inflation worries. Key economic data releases and central bank decisions will shape investor sentiment in the region. Meanwhile, tech stocks led gains in the U.S. market, highlighting the sector’s resilience amidst broader market fluctuations. The coming days will be crucial in determining the direction of markets in the region and beyond.
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