Asian markets saw minimal movement on Thursday as traders adopted a cautious stance while awaiting key U.S. inflation and jobs data. The upcoming releases are expected to act as a major catalyst for market activity. Recent record‑high rallies have been driven by a buying spree that began after shares fell to deep lows following Donald Trump’s April announcement of global tariffs. Since then, trade agreements and hints of a Federal Reserve rate cut have buoyed sentiment.
The U.S. central bank recently announced a rate reduction, citing a weak labor market and stable inflation, and forecasts suggest two more cuts this year. However, some Fed officials, including Chairman Jerome Powell, are urging a more cautious approach because inflation remains elevated. Powell’s comments that stocks are “fairly highly valued” and that there is “no risk‑free path” for rates have tempered market enthusiasm.
This week, the personal consumption expenditure index— the Fed’s preferred inflation gauge—will be released, followed by next week’s non‑farm payrolls report. Both data points will be closely watched and are expected to influence future interest‑rate decisions.
In Asian markets, Tokyo managed to stay in positive territory early on Thursday, while other exchanges oscillated between gains and losses. Hong Kong was flat despite a sharp jump in Alibaba’s share price after the company announced increased AI spending. China’s Chery Automobile surged on its Hong Kong debut, raising about $1.2 billion in its IPO. Small losses were recorded in Shanghai, Sydney and Singapore, whereas Taipei, Seoul and Manila remained relatively stable. This came after a second consecutive day of losses on Wall Street for all three major U.S. indexes.
Bank of America economists expressed optimism about the market outlook, citing easy fiscal conditions in major regions and the Fed’s rate cuts as factors that could drive a boom in earnings per share and GDP growth. They argue that expanding and accelerating profits, combined with sticky inflation, could boost sales and operating leverage, making a 2026 boom more likely than stagflation or recession.
Key market figures around 02:30 GMT showed the Tokyo Nikkei 225 up 0.2 percent at 45,719.71, the Hong Kong Hang Seng flat at 26,525.03, and the Shanghai Composite down 0.1 percent at 3,850.15. The euro/dollar rose to $1.1745, the pound/dollar to $1.3455, and the dollar/yen fell to 148.74 yen. Oil prices slipped slightly, with West Texas Intermediate down 0.4 percent at $64.73 per barrel and Brent at $69.09 per barrel, down 0.3 percent.
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