The major Asian markets were relatively unchanged on Thursday as traders looked at earnings results from top businesses including Netflix, IBM, and Morgan Stanley while preparing for the anticipated 25 basis point raise in interest rates by the U.S. Federal Reserve next month.
As of 9.37 a.m. Bangkok time, Japan’s Nikkei 225 was up 0.11%, rebounding from a low in early trade, as Japan’s trade deficit touched a record high of 21.7 trillion yen ($161.14 billion) for the fiscal year ended March.
The S&P/ASX 200 in Australia opened the day up fractionally, while the Kospi in South Korea was down 0.41%.
Hong Kong’s Hang Seng Index added 0.14%. In mainland China, the Shanghai Composite shed 0.51%.
The S&P 500 ended Wednesday’s trading session down 0.01%, while the Nasdaq Composite up 0.03%. The Dow Jones Industrial Average dropped 0.23%.
As inflation and monetary policy concerns return to the forefront, traders are preparing for central bank meetings in the coming weeks while banking sector issues subside.
The Federal Reserve is widely expected to carry out its final rate hike of 25 basis points in May and then leave rates unchanged for the remainder of the year, according to a Reuters poll of economists. Based on data from the CME FedWatch tool, the market expects the Fed to increase rates by 25 basis points at a rate of 83%.
President of the Federal Reserve Bank of New York John Williams added to the Fed’s hawkish tone by saying the inflation rate is still at troublesome levels and that the central bank will take action to lower it.
