However, Japan’s Nikkei 225 declined by 0.6%, moving further away from its recent record highs due to speculations of a potential increase in the country’s benchmark interest rate
Shares in Asia experienced mostly positive gains on Tuesday as investors awaited a report on inflation in the United States, which could potentially influence the Federal Reserve’s decision on interest rate cuts.
U.S. futures and oil prices also saw an increase.
However, Japan’s Nikkei 225 declined by 0.6%, moving further away from its recent record highs due to speculations of a potential increase in the country’s benchmark interest rate. This speculation has led to a stronger Japanese yen against the U.S. dollar.
In China, markets were mixed, with Hong Kong’s Hang Seng rising by 1.2% and the Shanghai Composite index slipping by 0.4%. In other parts of Asia, the S&P/ASX 200 increased by 0.1% and South Korea’s Kospi advanced by 0.4%.
On Monday, the S&P 500 slightly declined to 5,117.94, remaining close to its all-time high. The Dow Jones Industrial Average rose by 0.1% and the Nasdaq composite fell by 0.4%.
The upcoming report on U.S. inflation could potentially reveal a 3.1% inflation rate in February, in line with economists’ forecasts. Traders expect that the Federal Reserve will begin cutting interest rates in June.
In precious metals, the surge in gold prices to an all-time high can be attributed to the expectation of lower interest rates.
The price of gold for April delivery increased by $3.10, to reach $2,188.60 per ounce. Over the past year, gold prices have witnessed a significant rise of around 17%.
Bitcoin, commonly known as the “digital gold,” has soared to a fresh record high, climbing to nearly $73,000 from its previous level of below $17,000 at the onset of the previous year. It has surpassed its earlier peak of almost $69,000.
