HONG KONG, China — Asian markets wobbled Wednesday ahead of key US inflation data later in the day, with traders struggling to pick up the baton after a record performance on Wall Street.
A report showing a forecast-beating rise in April wholesale prices was offset by a downward revision for the previous month, while analysts said a deeper look at the figures suggested the Federal Reserve’s preferred gauge of inflation could ease further.
Investor s were also digesting a warning from the central bank’s boss that the battle against prices was proving tougher than expected and indicated interest rates could remain elevated for some time.
There was also some nervousness on trading floors after Beijing hit out at Washington’s decision to impose steep tariff hikes on Chinese imports such as electric vehicles and semiconductors.
The commerce ministry said the decision would “severely affect the atmosphere for bilateral cooperation”.
But all focus is on the release later Wednesday of the consumer price index (CPI), which will likely play a key role in the Fed’s decision on when to start cutting interest rates, if at all this year.
The report follows readings that came in above expectations in the fi rst three months of the year, denting hopes for a reduction in borrowing costs.
However, the data is forecast to show prices slowing down again.
“Investors are expecting inflation to fall in April,” Ameriprise’s Anthony Saglimbene said.
“Even if the decline is slight, markets are looking for further evidence that the downward trend in inflation re mains intact and, importantly, is not in the process of reversing course higher.”
A sense of optimism on Wall Street pushed all three main indexes higher, with the Nasdaq hitting a new record and the S&P 500 coming within a whisker of its own all-time peak.
Asia was mixed, with Tokyo, Sydney, Taipei and Jakarta rising but Shanghai, Singapore, Wellington, Mumbai, Bangkok and Manila falling. Hong Kong and Seoul were closed for holidays.
In Europe, London, Paris and Frankfurt all opened higher.
The CPI release comes after Fed chief Jerome Powell said readings at the start of the year had lowered his level of confidence that price rises would slow back down towards officials’ long-term target.
“The first quarter in the United States was notable for its lack of further progress on inflation,” he said. “We did not expect this to be a smooth road, but these were higher than I think anybody expected.
“And so what that has told us is we’ll need to be patient and let restrictive policy do its work.”
However, he added that he did not expect the Fed would need to hike rates.
Also Tuesday, Kansas City Fed chief Jeffrey Schmid warned rates could stay high “for some time” and that he was “prepared to be patient as this process plays out”.
Tokyo – Nikkei 225: UP 0.1 percent at 38,385.73 (close)
Shanghai – Composite: DOWN 0.8 percent at 3,119.90 (close)
London – FTSE 100: UP 0.5 percent at 8,470.02
Hong Kong – Hang Seng Index: Closed for a holiday
Dollar/yen: DOWN at 156.31 yen from 156.40 yen
Euro/dollar: UP at $1.0828 from $1.0819 on Monday
Pound/dollar: UP at $1.2594 from $1.2590
Euro/pound: UP at 85.99 from 85.92 pence
West Texas Intermediate: UP 0.7 percent at $78.55 per barrel
Brent North Sea Crude: UP 0.6 percent at $82.88 per barrel
New York – Dow: UP 0.3 percent at 39,558.11 (close)
—Bloomberg News contributed to this story
MANILA, Philippines – Winning his sixth championship in the UAAP, National University head coach Dante Alinsunurin said the Season 86 men’s volleyball tournament title is the most memorable thus far.
NU saw its incredible 34-game win streak snapped in the first round of the tourney in straight sets at the hands of the University of Santo Tomas Golden Spikers.
After the shock loss, UST came back from being two sets down to sweep the elimination round series with the four peat-seeking Bulldogs.
But the Bulldogs would go back to the finals — a round they are very familiar with — where they would face their tormentors.
In the best-of-three championship series, the Sampaloc-based squad would yield just one set and take home its fourth straight gold medal.
After the game, Alinsunurin acknowledged the tough journey the team had to go through to bring home the bacon anew.
“Based sa naging experience ko, ito talaga iyong naging medyo mabigat. Although, ang naging maganda rito yung players talaga nakita ko talaga na gustong-gusto nilang mag-champion kasi bawat training namin, tinatrabaho nila yung kung anong gusto nilang gawin na dapat gawin,” he told reporters.
“Ginawa nila iyong ano iyong adjustment na dapat gawin kaya sobrang thankful ako sa naging leadership ng mga seniors namin sa sitwasyon na ito na gusto talaga nilang makuha yung championship,” he added.
“Kaya sobrang memorable itong naging championship namin kasi talagang credit talaga sa players na nagawa namin ito.”
On Wednesday afternoon, Buds Buddin exploded for 28 points off 22 attacks, five blocks and a service ace to clinch the win.
Leo Aringo added 22, while the graduating team captain Nico Almendras chipped in 20.
Finals Most Valuable Player Owa Retamar had three points and 26 excellent sets.
Almendras and Retamar have both used up their playing years and will not be returning to the team next season.
Despite their departures, the mentor said the team’s recruitment program continues.
“Meron din naman kaming mga naka-ready na players na anytime mawala sila, may susunod na papalit. Sana lang maging successful yung gagawin namin para marating namin ulit yung ganitong klaseng… pagdating ng UAAP, makuha namin ulit iyong finals.”