Asia-Pacific markets are expected to see a decline today following a pause in Wall Street’s recent rally. Nvidia, a prominent artificial intelligence company, experienced its worst session in months, finishing down over 5%.
In other news, China has exited deflation territory with an increase in consumer prices. The country’s consumer price index rose by 0.7% year on year in February, surpassing expectations and marking the first month of inflation in four months.
The S&P/ASX 200 in Australia started the week on a down note, dropping 1.21% after reaching an all-time high. The Nikkei 225 in Japan is also predicted to fall below the 39,000 mark for the first time in weeks.
Despite these declines, futures for Hong Kong’s Hang Seng index indicate a slightly stronger open compared to the previous close. The Hang Seng index closed at 16,353.39, and futures are at 16,376.
On Friday, U.S. markets experienced losses as investors digested new data. The Labor Department reported an increase of 275,000 in nonfarm payrolls for the month, while the jobless rate rose to 3.9%. The S&P 500 and Nasdaq Composite both slipped after hitting new all-time highs, with the former losing 0.65% and the latter 1.16%. The Dow Jones Industrial Average also fell by 0.18%.
The Federal Reserve’s recent job data indicates progress in achieving its dual mandate of maintaining high employment while controlling inflation. Labor market growth and stable wage inflation demonstrate the Fed’s success in managing both aspects.
Crude oil futures suffered a weekly loss due to weak demand from China and oversupply concerns. West Texas Intermediate and Brent crude both posted declines, with WTI settling at $78.01 a barrel and Brent at $82.08 a barrel.
In summary, Asian markets are poised to fall after Wall Street’s rally pause, while China exits deflation with rising consumer prices. Despite the mixed market performance, there are indications of progress in the labor market and challenges in the oil industry.
