Asian stock markets are poised to open mixed this week as investors keep a close eye on the Federal Reserve’s meeting following another higher-than-expected U.S. inflation reading last Friday. Core personal consumption expenditures excluding food and energy, which rose 2.8% in March compared with forecasts for a growth of 2.7%, highlighted surging prices across various sectors. Personal spending also increased by 0.8%, exceeding expectations of a 0.7% rise.
In Asia, China’s official purchasing managers index (PMI) is scheduled to be released on Tuesday before the Labor Day holiday on Wednesday. Japan will publish its industrial production and retail sales data for March simultaneously with Hong Kong markets remaining closed due to public holidays. Last week witnessed a positive run for major U.S stock indices like S&P 500, Nasdaq Composite and Dow Jones Industrial Average, which jumped by 1%, 2% and 0.4% respectively after posting better-than-expected earnings reports from tech giants such as Alphabet Inc., whose shares soared to record highs on Friday following its announcement of a $70 billion buyback program along with the first dividend payout in company history.
Oil prices rose by 28 cents and 49 cents, per barrel for WTI crude oil futures from US and Brent Crude Oil Futures respectively due to growing apprehension over Middle East tensions. U.S. West Texas Intermediate (WTI) gained 0.85% during the week while global benchmark Brent advanced by 2.53%. The greenback also strengthened against Japanese yen, reaching its highest level since May 1990 at 156.896 per JPY. Japan’s Nikkei index closed last Friday with a gain of 2.34% for the week, marking its best weekly performance since March 22 when it recorded an increase by 5.63%.
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