Asian Markets Mixed, Wall Street Hits New Highs as Inflation Slowdown Fuels Rate Cut Hopes

Asian Markets Mixed, Wall Street Hits New Highs as Inflation Slowdown Fuels Rate Cut Hopes

Asian Markets Rise as Investors Await Bank of Japan's Decision

Asian shares mostly rose on Thursday, June 13, 2024, as investors turned their attention to the Bank of Japan's upcoming monetary policy decision later in the week. The Nikkei 225 dipped slightly, while other major indices like the S&P/ASX 200 and the Kospi saw gains.

The Bank of Japan is not expected to raise its benchmark rate at its meeting on Friday, but the economy is facing pressure from the dollar's continued strength against the yen. Analysts believe that if the BOJ maintains its accommodative stance, the upward trend in the USD/JPY pair could continue.

Meanwhile, Wall Street closed higher on Wednesday, with the S&P 500 and the Nasdaq composite reaching new all-time highs. The Dow Jones Industrial Average lagged behind, experiencing a slight dip.

The positive performance on Wall Street was driven by a slowdown in inflation, which raised expectations for future interest rate cuts by the Federal Reserve. This would ease pressure on the economy and boost investment prices.

Lower interest rates could also benefit the housing market by making mortgages more affordable. Homebuilder D.R. Horton and Builders FirstSource saw significant gains on Wednesday.

The technology sector also performed well, with Oracle and Nvidia leading the S&P 500 higher. Oracle's strong bookings, including AI-related contracts, contributed to its 13.3% jump. Nvidia, a major player in the AI field, gained 3.5%, pushing its market value above $3 trillion.

Apple also saw a significant increase, rising 2.9% after the announcement of new AI-related features in its operating systems.

In energy markets, benchmark U.S. crude oil and Brent crude oil both experienced slight declines.