Asian stocks gain ahead of US CPI
inflation data that could influence the Federal Reserve's thinking on rate cuts, while the crypto world got a boost after exchange-traded funds (ETFs) to track bitcoin were approved in the United States.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.67% higher, on course to snap its seven-day losing streak.
Japan's Nikkei breached 35,000 for the first time since February 1990 in a blistering start to the year, after rising 28% in 2023, its strongest yearly performance in a decade. The Nikkei was last up 1.9% at 35,085 on Thursday.
On the other hand, China stocks loitered near 5-year lows as investor sentiment remained subdued.
The blue-chip CSI 300 Index edged higher in early trading, while Hong Kong's Hang Seng Index rose 1.5%.
On Wednesday, U.S. stocks closed higher as mega caps rallied, but gains were limited ahead of inflation reports and major bank earnings later in the week.
E-mini futures for the S&P 500 rose 0.14%.
Market attention has zeroed in on the U.S. consumer price index report (CPI) due later on Thursday.
Core CPI is forecast to remain unchanged at 0.3% from the month before, while year-on-year inflation is expected to slow to 3.8% from November's 4%, a Reuters poll showed.
«The risk is that markets sell off on a strong print,» said Ben Bennett, APAC investment strategist for Legal and General Investment Management (LGIM). «The reaction could be more muted if we get a soft number.»
Investors have been rethinking just how steep and early the Fed will cut rates since the start of the year.
