- Asian equities rose alongside Wall Street on Thursday, as bets on additional US inflation weakness boosted appetite for risk in global markets.
- An index of regional equities surged 0.8%, its ninth gain in ten days, and was on track to reach its best level in roughly five months. Bond prices in Australia and New Zealand rose as treasuries held gains from the previous session.
- The yen rose on news that the BoJ would investigate the consequences of its ultra-easy policy. The yield on the country's benchmark 10-yr bonds remained close to the BoJ's 0.5% ceiling, as traders remain apprehensive of another shift from the central bank after BoJ's Governor Kuroda surprised them in December by doubling the amount yields may rise.
- As investors looked past the drumbeat of hawkish statements from federal reserve officials, a barometer of dollar strength extended its slight dip from Wednesday.
- As they focus on the approaching US consumer price index, traders appear to be downplaying a potentially disastrous stretch of earnings and the threat of a recession.
- The CPI will be analysed from top to bottom, with a particular emphasis on core inflation, which does not include food and energy and is thought to be a better indicator than the headline figure. The estimated 5.7% increase would be significantly beyond the Fed's target, explaining why it intends to keep rates higher for longer. However, YoY price growth would be moderate.
