Dangle Seng Index Features on AI Rally, Whereas Nikkei and ASX 200 Face Tariff Headwinds…

US Financial Knowledge Alerts Hawkish Fed Charge Path

US financial indicators additionally influenced threat sentiment. Nonfarm payrolls and US shopper sentiment fell wanting expectations. Nonetheless, a decrease unemployment fee and rising inflation expectations sank expectations for an H1 2025 Fed fee minimize.

The US unemployment fee dropped from four.1% in December to four.zero% in January, whereas the Michigan Inflation Expectations Index surged to four.three% in February, up from three.three% in January.

Tighter labor market circumstances could bolster wage development and shopper spending, fueling demand-driven inflation. The next inflation outlook may deliver ahead shopper spending plans, including additional upward stress on inflation.

China Inflation Accelerates, Signaling Stronger Home Demand

On Sunday, February 9, China’s inflation numbers set the tone for the Hong Kong and Mainland China markets. The annual inflation fee rose to zero.5% in January, up from zero.1% in December. The upswing in shopper costs urged a pickup in home demand, doubtlessly fueled by latest stimulus measures.

East Asia Econ, a analysis service, dismissed the chance that the Chinese language New 12 months skewed the info, stating:

China – core CPI again as much as +2%. January core CPI picked up. That doesn’t seem like a Chinese language New 12 months impact, and comes after This fall when costs have been already wanting firmer. This doesn’t imply inflation, but when core, which has underperformed different worth indicators, is now catching up, it will imply China isn’t in underlying deflation.”