This is CNBC’s live blog covering the Asia-Pacific market.
Asia-Pacific markets are set to rebound after Tuesday’s broad declines, with traders keeping an eye on Wednesday’s trade data from Japan and Singapore.
However, investor sentiment may weaken after Federal Reserve Chairman Jerome Powell said, “So far this year, we have not seen further progress in returning to the 2% inflation target.” be.
Powell echoed recent comments from central bank officials in suggesting that current policy levels are likely to remain in place until inflation is close to target.
In Australia, S&P/ASX 200 futures opened flat at 7,612, compared to the previous close of 7,612.5.
Japan’s Nikkei Stock Average is on an upward trend after hitting a two-month low. The index’s last closing price was 38,471.2, compared to 38,610 for Chicago futures and 38,500 for Osaka futures. The Reuters Tankan Index showed a decline in economic optimism in Japan in April.
Hong Kong’s Hang Seng Index futures stood at 16,256, above the HSI closing price of 16,248.97.
Overnight in the US, the Dow Jones Industrial Average rose 0.17%, snapping a six-day losing streak thanks to UnitedHealth stocks.
In contrast, the S&P 500 Index fell 0.21%, the Nasdaq Composite Index fell 0.12%, and the yield on the two-year Treasury note soared above 5% at one point following Powell’s remarks.
—CNBC’s Sarah Ming, Alex Harring and Lisa Kailai Han contributed to this report.
CNBC Pro: Morgan Stanley named world’s best dividend stock for this quarter
Investing in an increasingly volatile market is no mean feat amidst geopolitical risks, rising bond yields, and macroeconomic uncertainty.
Given the unpredictability of the situation, some analysts are renewing their recommendations for buying high-dividend stocks.
“Markets are pricing in expectations that the Fed will cut interest rates after March. Talk of “no landing” and “sticky inflation” is on the rise again. “These lead to higher U.S. bond yields, which particularly favors dividend stocks to outperform,” Morgan Stanley analysts said in a recent note, adding that this quarter’s “high-conviction” stocks listed.
CNBC Pro subscribers can read more here.
— Amara Balakrishna
CNBC Pro: ‘Hard to ignore’: Jeffries says this cybersecurity stock could double despite surging 75% in the past year
Investment bank Jefferies predicts the cybersecurity company’s stock will rise nearly 100% from current levels.
The stock appears to have momentum, with its stock up 75% in the past year and more than doubling since hitting an all-time low in early 2023.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Chairman Powell says interest rates may need to continue rising as inflation shows little progress
Federal Reserve Chairman Jerome Powell holds a press conference after two days of Federal Open Market Committee meetings on interest rate policy in Washington, March 20, 2024.
Federal Reserve Chairman Jerome Powell said Tuesday that interest rates may need to remain high for an extended period of time as the fight to rein in inflation continues.
Chairman Powell said during a panel discussion that there has been little progress in curbing inflation this year. For this reason, he said monetary policy may need to be maintained.
“Recent data shows solid growth and continued strength in the labor market, but so far this year there has been no further progress towards returning to the 2% inflation target,” the Fed’s president said. ” he said.
“Recent data clearly does not give us much confidence and instead indicates that it will likely take longer than expected to achieve that confidence,” he said. “Having said that, we believe that policy is well placed to address the risks we face.”
— Alex Harring, Jeff Cox
Iran’s attack on Israel increases long-term risks in the Middle East, Obama’s national security adviser says
Tom Donilon, former national security adviser in the Obama administration, said Iran’s air strikes on Israel over the weekend increase long-term risks in the Middle East.
Oil prices have fallen in the past two sessions as Israel and its U.S.-led allies successfully repelled the attack, allaying fears of a wider war. But Donilon said Israel was likely to respond with an attack and the current cycle of conflict was not over yet.
Donilon, who is also chairman of the BlackRock Investment Institute, said Iran is now prepared to respond to any Israeli attack on Iranian interests or individuals, often directly from its own territory.
“Over the long term, the risk profile is structurally increasing,” Donilon said. The former national security adviser said there is growing concern about the risk of terrorist attacks in Western countries as the Israel-Hamas war drags on.
“The longer this situation drags on, the more we become concerned about the ripple effects of terrorism here in the United States and especially in Europe,” Donilon said. He said the number of potential threats and conspiracies against Jewish organizations in particular is significant.
Donilon’s comments were interrupted by protesters calling on the Colombian government to divest from fossil fuels.
— Spencer Kimball
Fed’s Mr. Jefferson expects inflation to decline by keeping policy unchanged
Federal Reserve President Philip Jefferson said on Tuesday that inflation will continue to decline as the central bank maintains restrictive policies.
“My fundamental outlook is that interest rates will remain at current levels, inflation will fall further, the rebalancing of labor demand and supply will continue, and the labor market will remain strong,” Jefferson said. Stated. Policy decisions have changed over the years.
“Of course, the outlook remains highly uncertain and if future data suggests that inflation is more persistent than I currently expect, I will not extend the current repressive policy stance,” he said. It would be appropriate to maintain it for a period of time,” he added.
Markets are currently pricing in the Fed to keep interest rates on hold until September, and then start lowering them gradually.
— Jeff Cox
