Asian Shares Rise Despite Growing Trade Tension
Stock indices of the Asia-Pacific region are growing, recovering from the sharp losses in the previous session, despite growing tensions in trade between the US and China. The markets took a breather as prospects of possible negotiations between the world’s largest economies cooled worries of what could be more retaliation. Japan’s Nikkei 225 increased by 0.95%, Australian stocks rose by 0.68% and China shares managed gains of 2.30%.
The US dollar rose to a six-month high against the Japanese yen and stabilized against other major currencies, as yesterday's data on producer inflation in the US confirmed expectations that the Federal Reserve will raise interest rates two more times this year. Investors also expect the release of data on consumer inflation in the US today, to clarify when and how fast the Fed will raise interest rates.
It is forecast, that CPI will hit 2.9% y/y in June, with prices up 0.2% m/m, while core inflation should rise to 2.3% on a 0.2% m/m increase.