Asian Markets Inch Higher as Traders Await US Inflation Data

Asian markets advanced on Wednesday, January 15, 2025, buoyed by cautious optimism ahead of key US inflation data that could provide insights into the Federal Reserve’s future interest rate decisions. Gains in Japan and South Korea lifted the MSCI Asia Pacific Index, which climbed 0.4%, marking its second consecutive session in the green.

Asian Markets Show Mixed Performance

On January 15, 2025, at 9:40 AM (IST) Japan’s Nikkei 225 edged down slightly by 0.03%, closing at 38,464.70, while South Korea’s Kospi gained 0.41% to trade at 2,506.85. However, the Asia Dow index slipped by 0.89%, trading at 3,649.29.

Chinese stocks are trading marginally lower by 0.25% despite US-listed mainland shares surging over 2%, following reports that Donald Trump’s incoming administration may adopt a gradual approach to tariff increases.

Wall Street Ends Mixed on Lighter Inflation Data

US markets closed on a mixed note on Tuesday, January 14 2025, after the producer price index data came in below expectations. The S&P 500 edged up 0.11%, closing at 5,842.91, while the Nasdaq Composite dipped 0.23% to settle at 19,044.39.

The Dow Jones Industrial Average posted stronger gains, rising 221.16 points, or 0.52%, to finish at 42,518.28.

Market Outlook Amid Inflation Concerns

The softer-than-expected inflation data from the US has provided some relief to investors concerned about the Federal Reserve’s rate trajectory.

However, markets remain cautious as traders await more comprehensive inflation metrics, which are expected later this week. Asian markets are also reacting to overnight gains on Wall Street, as well as potential shifts in US-China trade policies.

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