Mumbai, 9 Sep (Commoditiescontrol): Asian share markets fell on Monday, weighed down by fears of a potential U.S. economic slowdown, which also impacted Wall Street. However, U.S. stock futures later recovered from early losses, and bond yields stabilized.
China's consumer price index (CPI) data indicated continued global disinflation, with producer prices dropping by 1.8% in August, exceeding analysts' expectations of a 1.4% decline. The CPI also missed forecasts, rising only 0.6% year-on-year, with most of the increase driven by food prices, while goods prices grew a mere 0.2%, highlighting weak domestic demand.
Japan's Nikkei index was hit the hardest, dropping 2.4% following a nearly 6% decline last week, driven by losses in tech stocks. Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2%, after a 2.25% decline last week. South Korea's market also slid 1.3%.
Despite these losses, U.S. futures showed signs of recovery, with S&P 500 and Nasdaq futures each gaining 0.2%. EUROSTOXX 50 futures rose 0.3%, and FTSE futures climbed 0.5%.
The mixed U.S. August payroll report has left investors speculating on whether the Federal Reserve will implement a substantial 50 basis point rate cut next week. Fed fund futures suggest a 33% chance of such a cut, following comments from Fed officials, though aggressive easing remains an option.
Looking ahead, U.S. consumer price data for August, due on Wednesday, is expected to support the case for a rate cut, with headline inflation forecasted to slow to 2.6% from 2.9%. Meanwhile, markets are also anticipating a quarter-point cut from the European Central Bank on Thursday, with guidance beyond September being closely watched.
In commodity markets, lower bond yields kept gold prices subdued at $2,497 per ounce, while oil prices recovered from their worst weekly decline in 11 months. Brent crude rose $1.01 to $72.07 per barrel, and U.S. crude gained $1.02 to $68.69 per barrel.
(By Commoditiescontrol Bureau: 09820130172)
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