Asia open: A bountiful start to the quarter

==========

Asian markets are set to commence trading on solid footing to start the new quarter, buoyed by signs of a "soft landing" in US inflation data on Friday and encouraging macro data from China over the weekend. The closely watched PMI prints showed an acceleration in both the manufacturing and service sectors. The manufacturing Purchasing Managers' Index (PMI) in China climbed to 50.8 from 49.1 in the previous month, signalling a notable improvement in activity. Additionally, export orders showed signs of strengthening. China has set a target to increase gross domestic product by approximately 5% this year. Chair Jerome Powell commented on the latest inflation data released on Friday, stating it was "pretty much in line with our expectations." He emphasized that the Federal Reserve should not lower interest rates until officials are confident that inflation is progressing toward the central bank's target of 2%. The monthly Non-Farm Payrolls (NFP) report holds significant importance, often shaping market expectations regarding the Fed's monetary policy decisions. The unemployment rate is expected to hold steady at 3.8%. In addition to the jobs report, investors will face a flurry of top-tier US economic releases scheduled for the first week of every month. Meanwhile, in Europe, inflation data for March will be released ahead of the European Central Bank's (ECB) April gathering. In Japan, the Tankan survey is scheduled to be published, providing insights into business sentiment in the country. Currency markets continue to be impacted by Fed Governor Christopher "No Rush" Waller's moderately hawkish stance. The Japanese yen remains in what is commonly called "intervention" territory, indicating that authorities may monitor its exchange rate closely and offer up stern warnings if the currency weakens too fast. Meanwhile, China's yuan faces pressure against the US dollar but has reached a 30-year high against the yen.

#AsianMarkets #UsInflationData #ChinaPmi #FederalReserve #NonfarmPayrolls #UnemploymentRate #UsEconomicReleases #EuropeanInflationData #EuropeanCentralBank #TankanSurvey #CurrencyMarkets #JapaneseYen #ChineseYuan

https://www.fxstreet.com/analysis/asia-open-a-bountiful-start-to-the-quarter-202403312307