Asian equities are poised for a potential uptick, following the momentum of global peers after a subdued trading day yesterday. Positive sentiment, fuelled by rising U.S. jobless claims, drove a dovish response in the markets. However, the semiconductor sector was notably affected by the U.S. government’s increased restrictions on Chinese chips and trade, leading to a 1.8% decline in Nvidia. This negative outlook may impact Asian semiconductor stocks today.
On the macroeconomic front, recent data has been relatively benign. U.S. Treasury yields dipped following the jobless claims report, which indicated the highest level since August last year. This softer data also weakened the U.S. dollar, providing a favourable environment for risk assets and emerging market (EM) currencies. Today’s focus will be on the preliminary U.S. Michigan survey, while traders anticipate next week’s significant economic data, including the Producer Price Index (PPI), Consumer Price Index (CPI), and retail sales figures. Additionally, several Federal Reserve officials are slated to speak, with Jerome Powell’s address on Tuesday being a focal point for core markets.
