Aug 6, 01:34 AM

Asian Stocks Edge Higher as Weak US Services Data Muddies Fed Path

Asian shares were broadly directionless at Wednesday’s open after weaker-than-expected US services figures and sticky inflation deepened doubts about the Federal Reserve’s next move on interest rates. The region-wide MSCI Asia Pacific Index inched up 0.2%, with Japan’s Topix rising 0.6%, while the Nikkei 225 was little changed. Futures on Hong Kong’s Hang Seng slipped 0.1%, and contracts on the S&P 500 were flat after Wall Street lost momentum late in the previous session. The subdued tone followed data showing US services activity barely expanded in July as firms pared hiring amid softer demand and higher costs. Combined with still-elevated price pressures, the report complicated investors’ attempts to gauge whether the Fed will resume tightening or pause later this year. Policy uncertainty was compounded by the prospect of fresh US trade measures. President Donald Trump signalled he is ‘very close’ to an agreement with Beijing but also floated higher levies on nations buying Russian energy and warned of new tariffs on Indian exports within 24 hours. Market participants are also watching for the Reserve Bank of India’s rate decision due late Wednesday, with some economists bringing forward forecasts for monetary easing. Treasury yields steadied after falling on Tuesday, the dollar softened slightly, and oil held near US$65 a barrel. Strategists expect volatility to persist as investors weigh mixed economic signals against the risk of further policy shocks on both the monetary and trade fronts.

#US #Federal Reserve #MSCI Asia Pacific Index #Japan #Topix #Nikkei #Hong Kong #Hang Seng #Wall Street #Fed #Donald Trump #Beijing #Russian #Indian #Reserve Bank of India

Written with ChatGPT .

Asian Stocks Edge Higher as Weak US Services Data Muddies Fed Path

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