US stocks hit fresh record highs after US inflation data reassured investors the Fed will cut next week, with more later in the year. Australian inbound tourism rises, but visitors from China aren’t back at pre-pandemic levels.
In our Deep Dive interview, ANZ Senior Asia Rates Strategist Jennifer Kusuma analyses Indonesia’s worsening fiscal situation.
5 things to know in 5 minutes:
US core inflation was unchanged at 0.3% in August, boosting investor hopes for more Fed rate cuts. ANZ Economist Bansi Madhavani now sees five 25 basis point rate cuts from the Fed, including one next week.
Japan’s Producer Price Inflation fell only slightly in August to be up 2.7% over the year. ANZ Head of FX Research Mahjabeen Zaman says the PPI shows signs of stability as markets look for when the Bank of Japan might hike rates again.
Mahjabeen says attention now turns to the Bank of Japan’s rates meeting next week.
Following on from our deep dive on Australia’s services export growth this week, data yesterday showed inbound short-term migration up 12.8% in July from a year ago. ANZ Economist Sophia Angala says it’s still 6% down on pre-COVID levels, though.
Sophia says there is lagging numbers from China are the main reason inbound tourism hasn’t returned to pre-COVID levels.
Cheers,
Bernard.
PS: Catch you next week as we get ready for the Federal Reserve’s rates meeting.
