Asian Markets Mixed as RBA Holds Rates, US Inflation Data Boosts Sentiment
Sydney, Australia – Asian markets presented a mixed picture Tuesday, as Australia’s central bank began a policy meeting expected to hold interest rates steady amid conflicting economic signals, while positive sentiment from Friday’s U.S. inflation data continued to ripple through the region.
Australia’s S&P/ASX 200 rose 0.43%. South Korea’s Kospi added 1.05% and the small-cap Kosdaq was 0.82% higher. However, Japan’s Nikkei 225 fell 0.68%, and the Topix declined 1.27% following a record high on Friday. Hong Kong’s hang Seng index futures were trading higher, at 26,290, above the HSI’s last close of 26,128.2.
The Reserve Bank of Australia (RBA) will conclude its two-day policy meeting with an expected decision to hold its cash rate steady at 3.6%, according to a reuters poll.The RBA faces a complex economic landscape,with August CPI data indicating “material upside risks to Q3 inflation” alongside a cyclical upswing in activity,according to Commonwealth Bank of Australia. Simultaneously, signs of softer employment and moderating wages growth are also present.
Friday saw a rally in U.S. markets following the release of key inflation data.The Dow Jones Industrial Average advanced 299.97 points, or 0.65%, to close at 46,247.29. The S&P 500 added 0.59% to close at 6,643.70, while the Nasdaq Composite rose 0.44% to settle at 22,484.07. Despite the rally, the week still ended with losses for the major indexes; the Nasdaq Composite and S&P 500 slid 0.7% and 0.3% respectively, and the Dow shed 0.2%.
