The Core PCE Price Index and the US Jobs Report may change the narrative regarding Fed policy uncertainty.
Asian Economic Calendar: Aussie Inflation Puts the RBA in the Spotlight
On the Asian economic calendar, Australian inflation numbers for March could impact rate-sensitive ASX 200-listed stocks. Hotter-than-expected numbers may reignite speculation about an RBA rate hike. Economists forecast the CPI Monthly Indicator to increase from 3.4% to 3.5%.
Overnight crude oil, gold, and iron ore price movements also need consideration. Oil prices retreated, while gold prices ended the session higher. Concerns about demand from China could leave iron ore prices and mining stocks under pressure.
Currency Volatility Adds Pressure to Asian Equity Markets
Investors remained edgy about the increasing threat of an intervention to bolster the Japanese Yen. The USD/JPY gained 0.10% on Tuesday, ending the session at 151.558. Significantly, the USD/JPY has trended sideways in recent sessions. A move to 152 could force the Japanese government into action. An intervention may pressure Nikkei-listed export stocks.
While the Japanese government attempts to limit the downside for the Yen, the PBoC also warrants intervention attention. USD/CNY price swings on Friday (March 22) and Monday (March 25) have unsettled the markets.
Corporate Earnings Put the Hang Seng Index in Focus
It is earnings season for the Hang Seng Index, with many firms releasing earnings on Wednesday. Industrial Commercial Bank (1398), Bank of Communications (3328), and China Life Insurance (2628) are among the big names on the Hang Seng earnings calendar.
