Daily Market Briefing, Asia Pacific

• Positive tone. US equities, bond yields, & the USD rose at the end of last week. US data remains positive. Markets also positioning for Trump 2.0.• US policy. Pres. Trump will be in the drivers seat. Will he announce a range of measures after coming into power or is too much expected?• Event Radar. US Pres. Inauguration (Tues), NZ CPI (Weds), BoJ & MAS meetings (Fri), & global PMIs (Fri) in focus this week. Global TrendsGlobal equities ended last week on a positive note ahead of today’s US holiday and the US Presidential Inauguration (Tues 4am AEDT). A positive...

• Mixed signals. US equities failed to push on despite further falls in bond yields. USD/JPY continues to slip back. AUD & NZD lose a bit of ground.• Data & comments. US consumer spending holding up. Fed’s Waller encouraged by inflation trends keeps the door open to more policy easing.• AU jobs. Another robust Australian labour force report. Unemployment better than RBA expecting. China data batch, which includes Q4 GDP, out today. Global Trends A mixed performance across markets overnight with the data flow and comments by US officials in focus. After yesterday’s strong rally US equities consolidated despite a...

• Inflation trends. Softer US & UK core CPI weighed on bond yields & supported risk sentiment overnight. The backdrop helped AUD & NZD edge higher.• AU jobs. Monthly labour force data due today. There is a risk of payback after a strong report last month. Softer figures could bolster RBA rate cut bets.• Data & politics. US retail sales out tonight. China data batch released tomorrow. Next week focus will be on the US Presidential Inauguration. Global TrendsUS and UK inflation was in focus overnight and downside surprises generated a ‘relief rally’ in some of the recently beaten-up markets....

• Tariff news. Reports the Trump Administration might implement tariffs month-by-month calmed some market nerves. USD eased helping AUD & NZD tick up.• Stepping back. But moves were modest compared to recent trends. AUD & NZD remain near the bottom of their respective multi-year ranges.• Event radar. UK & US CPI released tonight. Several Fed members speaking. AU employment tomorrow. US retail sales & China data also due this week. Global TrendsIt has been a turbulent start to 2025, though a sense of calm somewhat returned yesterday after media reports suggested the incoming Trump Administration might implement trade tariffs on...