ASIA PACIFIC MARKET: STRUGGLES TO MAKE HEADWAY AS CENTRAL BANKS, JOB NUMBERS PROD BULLS

Asia-Pacific shares trade mixed during Wednesday as easing hawkish bias about the Fed contrasts with the downbeat US jobs report and the Reserve Bank of New Zealand’s (RBNZ) hawkish surprise. Adding strength to the market’s indecision could be the cautious mood ahead of some more key data from the US concerning employment and activities.

While portraying the mood, MSCI’s Index of Asia-Pacific shares outside Japan prints mild gains but Japan’s Nikkei 225 drops 1.65% intraday during early Wednesday.

That said, US JOLTS Job Openings dropped to the lowest levels since May 2021 while flashing a 9.931M figure for February versus 10.4M expected and 10.563M revised prior. On the same line, US Factory Orders for February came in -0.7% MoM versus -0.5% expected and downwardly revised -2.1% prior. With this, market participants feared slowing of job growth in the world’s largest economy and consequences of the same for equities.

Additionally challenging the share buyers is the RBNZ’s surprise rate hike. That said, RBNZ surpassed market forecasts while announcing 50 basis points (bps) worth increase to its Official Cash Rate (OCR), lifting it to 5.25% from 4.75% prior. Even so, downbeat concerns about the Fed’s next move allow New Zealand’s NZX 50 to tame intraday losses, down 0.35% on a day by the press time. It should be observed that Australia’s ASX 200 remains directionless as RBA’s Lowe defends hawks by showing readiness for further rate hikes if needed.

On a broader front, the S&P 500 Futures print mild gains even as Wall Street closed with minor losses. Further, the US 10-year and two-year Treasury bond yields also take a breather around 3.35% and 3.85% respectively, after falling in the last four and three consecutive days.

Further, the US Dollar Index (DXY) dropped to the lowest levels in five weeks on Tuesday, before renewing the multi-day bottom and then bouncing off the 101.43 level to around 101.54 by the press time. Also portraying the mood could be the sluggish prices of Oil and Gold.

Moving on, Asia-Pacific traders may witness inaction as traders remain cautious ahead of the US ISM Services PMI and ADP Employment Change for March. Also restricting the market moves is the holiday in China and Hong Kong.