Asian stocks rise slightly ahead of key inflation data

Asian stocks rise slightly ahead of key inflation data

Asian shares have risen as investors brace for a busy week of data, including a key U.S. inflation report that could influence future interest rate cuts. The Federal Reserve's preferred inflation measure, core personal consumption expenditures (PCE), is anticipated to increase by 0.3% in April, maintaining an annual pace of 2.8%. This report is crucial as it may impact the Federal Reserve's decisions on monetary policy.

In Europe, inflation figures for the euro zone are expected to show a 2.5% increase, which may prompt the European Central Bank to consider easing its policy. Meanwhile, the Bank of Japan plans to proceed cautiously with its inflation-targeting frameworks, although it might raise rates modestly to 0.15%. The potential for lower borrowing costs globally has generally been favorable for equities and commodities, although some markets experienced profit-taking last week.

In currency markets, attention remains on the yen, with the possibility of Japanese intervention being a focal point. The dollar held steady at 156.78 yen as Japan renewed its efforts to counter excessive yen depreciation during a recent Group of Seven (G7) meeting. Overall, the prospect of global monetary easing has bolstered investor sentiment across various financial markets.


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