Most markets rise as China-US truce extended, inflation in focus
Hong Kong (AFP)Asian markets mostly rose Tuesday, with Tokyo hitting a record, as investors welcomed the extension of a China-US tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day.Donald Trump's widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff.In an executive order, the White House reiterated its position that there are "large and persistent annual US goods trade deficits" and they "constitute an unusual and extraordinary threat to the national security and economy of the United States".With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of Trump's trade war.First up is the US consumer price index (CPI) later in the day, which could play a major role in the Federal Reserve's decision-making with regard to interest rates.Bets on a cut have ramped up in recent weeks owing to signs that the world's number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months.Expectations are for CPI to come slightly above June's reading, but analysts warned investors were walking a fine line with a forecast-topping print likely to dent rate cut hopes and a too-weak read stoking economic fears.Also on the agenda this week are wholesale prices and retail sales, with the Fed's favoured gauge of inflation at the end of the month. Bank officials are then set to make their decision in the middle of September.Forecasts are for a reduction at that gathering and one more before the end of the year.Asia's markets rally was led by Tokyo's Nikkei 225, which briefly soared almost three percent to hit a record high of 42,999.71 on renewed optimism over the Japanese economy after officials reached a deal to avert the worst of Trump's tariffs.Shanghai, Sydney, Mumbai, Jakarta and Manila also advanced with London, Paris and Frankfurt.
Seoul, Singapore and Wellington dropped.
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