ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in electronics stocks,
thanks partly to the yen's recent weakness despite continuing uncertainty over policy tightening by central banks. Investors were focusing on economic data and their policy implications. The Nikkei Stock Average was up 0.5% at 27550.60. The index has traded around 27500 the past few weeks.
South Korea's benchmark Kospi rose 0.8% to 2422.27 in early trade, tracking Wall Street's rebound overnight. The local index is regaining ground after a two-session losing streak. Battery, steel and auto stocks led the advance in morning trade. Risk-off sentiment was easing. USD/KRW was trading 0.4% lower at 1,318.00.
James Rutherford, head of European equities at Federated Hermes, said that while recent inflation surprises have unsettled markets, selloffs have been relatively short lived.
"Last week, some of the data spooked people and yields moved up again. But here we are on Monday morning and actually that's sort of all forgotten about," said Mr. Rutherford. "People are slightly hardened to it and understand that rates might go a little bit higher...but the market is not looking at next month's inflation data, it's looking at six months or nine months or even 12 months."
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