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Tokyo, Japan skyline with the Tokyo Tower
Chunyip Wong | E+ | Getty Images
Asia-Pacific markets were set to open higher Thursday, breaking ranks with Wall Street that fell overnight as U.S. stronger inflation data diminished prospects of policy easing by the U.S. Federal Reserve.
Australia's S&P/ASX 200 rose 0.1%.
Japan's Nikkei 225 futures pointed to a higher open for the market. The futures contract in Chicago is currently at 39,245 and its counterpart in Osaka last traded at 39,180 compared to the index's previous close of 38,963.7.
Hong Kong's Hang Seng index futures were at 22,072, also higher than the HSI's last close of 21,857.92.
Overnight in the U.S., the S&P 500 tumbled and bond yields spiked after consumer prices rose more than expected in January.
The broad market index slipped 0.27% to end at 6,051.97, and the Dow Jones Industrial Average tumbled 225.09 points, or 0.5%, to 44,368.56. The Nasdaq Composite eked out a 0.03% gain to close at 19,649.95.
The latest inflation data suggests that the Fed may be less likely to resume its rate-cutting campaign soon, as well as raises concerns that the next move could even be a hike.
During his testimony before the House Committee on Financial Services on Wednesday, Federal Reserve Chair Jerome Powell noted that the latest CPI data serves as a reminder of the Fed's progress in moving inflation closer to its 2% target, but acknowledged that it is "not quite there yet."
Indian Prime Minister Narendra Modi is traveling to the U.S. for talks with President Donald Trump and his administration and is expected to mitigate the threat of reciprocal tariffs as well as artificial intelligence policies.
— CNBC's Pia Singh and Brian Evans contributed to this report.
Powell indicates Trump call for lower rates won't influence policy
U.S. Federal Reserve Chair Jerome Powell testifies before a House Financial Services Committee hearing on "The Semiannual Monetary Policy Report to the Congress," on Capitol Hill in Washington, D.C., on Feb. 12, 2025.
Nathan Howard | Reuters
Federal Reserve Chair Jerome Powell said Wednesday that interest rate decisions won't be based on political pressure, even if that's coming from President Trump.
Asked about comments Wednesday morning from the president in which he called for lower rates, Powell said, "It's a practice to never comment on anything the president says, but I think people can be confident that we'll continue to keep our heads down, do our work, make our decisions based on what's happening in the economy."
The response came during questioning in front of the House Financial Services Committee, where Powell was appearing as part of his semiannual testimony on monetary policy. Asked whether statements from elected officials "are not among the things that cause you to act one way or the other," the chair responded, "That's correct."
— Jeff Cox
English (US)