Asian equities pushed higher Wednesday as investors were buoyed by China's reopening and optimism that key data due this week will signal a further slowdown in US inflation.
Traders tracked a Wall Street advance as they brushed off fresh warnings that Federal Reserve rates would continue to rise and a World Bank decision to slash its global growth forecast.
SPI Asset Management's Stephen Innes said:"Despite a solid start to the year, there should be a lot more upside to China's stocks, with earnings upgrades to drive further outperformance. Focus this week is on Thursday's US consumer price index, which is expected to show that price gains eased further in December.But while that could possibly allow the Federal Reserve to take a lighter approach to its monetary tightening campaign, policymakers continue to push back against any pivot away from rate hikes.
Meanwhile, Fed governor Michelle Bowman said that while inflation was coming down,"we have a lot more work to do" and that once rates had peaked they would have to stay there for some time. And JP Morgan Chase CEO Jamie Dimon said borrowing costs could actually go higher than the five percent priced in by markets, suggesting they could hit six percent.
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