Asia-Pacific markets are expected to decline as investors react to recent U.S. stock market activity, where the S&P 500 and Dow Jones closed slightly higher following the release of the Federal Reserve’s meeting minutes. These minutes indicated that interest rates may remain elevated for an extended period due to persistent inflation concerns. As a result, U.S. Treasury yields increased, briefly surpassing 4.7%.
In Japan, the Nikkei 225 is set to open lower, with futures trading around 39,950, while Australia’s S&P/ASX 200 saw a modest decline of 0.32%. Hong Kong’s Hang Seng is also expected to start lower after recent futures trading indicated a drop compared to its previous close.
Investors in Asia are particularly focused on upcoming inflation data from China for December, with expectations of stagnant consumer prices and declining producer prices. Overall, market sentiment appears cautious as participants await further economic indicators and adjust their strategies in response to the Fed’s cautious stance on inflation management.
