Asian investors watch US consumer prices: impact on US Federal Reserve policy?

Asian investors watch US consumer prices: impact on US Federal Reserve policy?

According to a report by amp2.wiwo.de, Asian investors held back at the beginning of the week as they looked forward to the development of consumer prices in the USA. Particular attention is paid to the US Federal Reserve and its future interest rate path in order to obtain new information on monetary policy in the USA.

This reluctance was reflected in the important indices. The Nikkei index recorded only minimal gains, while the broader Topix remained almost unchanged. There was also little movement in China, with the Shanghai Composite rising slightly and the CSI index losing slightly.

US Federal Reserve Chairman Jerome Powell's statements at the end of the week increased investor uncertainty. Despite all the caution, he still left open the possibility of interest rate hikes, which gave some investors hope for a restrictive monetary policy and possible interest rate cuts.

There was also movement with regard to individual companies. Shiseido shares recorded a significant discount of over 14 percent on the Japanese stock market after the company lowered its profit target for the current financial year.

As a financial professional, it is important to keep a close eye on consumer price trends in the United States. If these are higher than expected, this could have a strong impact on the market by increasing the likelihood of interest rate hikes. This, in turn, could impact equity markets in Asia, particularly in relation to companies that are heavily affected by international interest rates.