Market Tensions Rise Amid Inflation and Tariff Concerns
Asian markets faced pressure as the dollar hit its strongest against the yen since April, driven by U.S. inflation and tariffs. U.S. Treasury yields and the dollar rose on inflation data, while tech shares held firm. Investors are cautious ahead of producer price data and bank earnings.
Asian stock markets were under significant pressure on Wednesday, with the dollar reaching its highest level against the yen since early April. This shift came as U.S. inflation data indicated that tariffs are contributing to rising prices, affecting expectations for Federal Reserve policy shifts.
U.S. Treasury yields increased to their highest in over a month, boosting the dollar particularly against the yen. Nevertheless, technology shares demonstrated resilience, highlighted by a 4% increase in Nvidia, a leading player in artificial intelligence, following an overnight rally.
Oil prices remained stable, and consumer price data showed a 0.3% rise in June, tracing back to Trump's escalating import tariffs. The Fed is opting for steady interest rates, waiting to discern the tariff impacts. Meanwhile, investors are awaiting upcoming bank earnings and closely monitoring additional inflation data.
(With inputs from agencies.)
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