Written by Kevin Buckland
TOKYO (Reuters) – Asian stocks fell on Tuesday while the dollar weakened as investors awaited minutes from the U.S. Federal Reserve's latest policy meeting to determine the timing and extent of interest rate cuts this year. remained steady.
However, Japan's tech-heavy Nikkei Stock Average rose slightly, led by semiconductor stocks, after the Nasdaq hit a record high the night before, ahead of Nvidia's earnings announcement scheduled for Wednesday.
Gold prices edged back toward record highs on Monday, but oil prices eased as Fed officials remained cautious about recent inflation relief, while oil prices eased on concerns that U.S. interest rates will remain high. Allayed concerns.
Cryptocurrencies Ether and Bitcoin rose to six-week highs amid growing speculation that the U.S. Securities and Exchange Commission (SEC) may approve a spot Ether exchange-traded fund (ETF).
Markets are currently pricing in about 41 basis points of Fed rate cuts this year, with a quarter-point cut in November fully priced in.
After three straight months of unexpected gains at the start of the year, traders are reconsidering their bets on easing after data earlier this month showed consumer price pressures eased in April. hurried.
Still, Fed officials have been reluctant to declare that inflation is under control, with Vice Chairman Philip Jefferson saying Monday it was too early to tell whether the economic slowdown would be “prolonged.” Vice-chairman Michael Barr said more time was needed for restrictive policies.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6%, weighed down by the Hang Seng share price, which fell more than 1% from Monday's multi-month high.
Japan's Nikkei average was a rare bright spot, rising 0.2% on top of the previous day's 0.73% rise.
Nasdaq futures fell 0.1% after the cash index rose 0.65% overnight to close at a record high. S&P 500 futures were flat after rising 0.1% on Monday.
“Market sentiment remains relatively strong, with implied volatility low, supported by growing confidence that the U.S. will cut interest rates this year,” Kyle Rodda, senior market analyst at Capital.com, said in a note. said.
At the same time, it has been pointed out that the record high prices of metals such as gold and copper “suggest that economic activity is improving globally, which may be a persistent factor in inflation.” “There is,” Rodda said.
Gold fell 0.2% to about $2,420 an ounce after rising to a peak of $2,450 for the first time overnight.
The dollar rose slightly against its major peers on Tuesday, following a similar gain on Monday, with the dollar index up 0.1% to 104.69.
The yield on the 10-year Treasury note was little changed at 4.4453%, after rising 1.7 basis points on Monday.
Brent crude oil futures fell 12 cents, or 0.1%, to $83.34 a barrel, while U.S. West Texas Intermediate crude oil (WTI) fell 8 cents, or 0.1%, to $79.72 a barrel.
Meanwhile, Monday's standout performers continued to rise as traders surged into the cryptocurrency following reports that the SEC suddenly asked exchanges wishing to trade Ether ETFs to update their regulatory filings. , there were growing expectations that it would be approved this week.
Bitcoin rose to $71,957 and Ethereum rose to $3,720.80, both reaching levels not seen since April 9.
“Speculation surrounding an Ether ETF certainly played a role in this move, adding fuel to the fire of a reignited crypto bull market following disappointing U.S. CPI data last week,” IG analyst Tony Sycamore said.
Sycamore predicts that Bitcoin will retest its all-time high of $73,803.25 in the coming days, before heading towards $80,000.
(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)
