Investing.com– Most Asian stocks edged higher on Wednesday tracking overnight rise on Wall Street, but gains were limited as investors remained cautious ahead of key U.S. inflation data, particularly in light of the Federal Reserve’s hawkish stance in December.
U.S. stock index futures were higher in Asian trade on Wednesday. Market participants’ focus was on a key inflation reading due later in the day to assess the Fed’s interest rate outlook for 2025.
The Fed had signaled fewer rate cuts in 2025 during its December meeting, citing sticky inflation.
Asia shares see marginal moves ahead of US CPI
Traders are exhibiting caution ahead of the upcoming U.S. , resulting in marginal moves across the region.
Japan’s index rose 0.3%, while gained 0.6% on Wednesday.
Australia’s was largely unchanged. Investors await December due on Thursday.
China’s index edged 0.2% lower, and the index was largely unchanged, while Hong Kong’s index inched up 0.1%.
Focus this week will be on several key economic indicators that will provide insights into China’s economic performance at the close of 2024. The country’s full-year 2024 figures are due on Friday. Additionally, December’s data, and figures are also due on Friday.
Elsewhere in Asia, stock indexes fell with Thailand’s falling more than 1%. Singapore’s fell 0.3%, while Malaysia’s index dropped 0.7%.
India’s were slightly lower on Wednesday.
Asian shares are facing additional downward pressure from prospects of fewer Fed rate cuts in 2025. Markets now anticipate just one rate cut this year, a sharp adjustment from the earlier expectation of four cuts before the Fed’s December meeting, according to .
South Korean President Yoon arrested over martial law
South Korea’s impeached President Yoon Suk Yeol was arrested on Wednesday over his failed attempt to enforce military law in late 2024, according to local media reports.
The index edged up 0.3%.
The Bank of Korea is expected to lower its by 25 basis points on Thursday, advancing the move by a month, to support South Korea’s struggling economy amid heightened political uncertainty, according to a Reuters poll.
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