Marketmind: PMI, PMI baby




  • In Business
  • 2022-11-24 21:33:12Z
  • By Reuters
 

By Jamie McGeever

(Reuters) - A look at the day ahead in Asian markets from Jamie McGeever.

Asian markets are looking to round off the week on a positive note on Friday, with regional stocks on course to chalk up their fourth straight weekly rise.

The relative calm may not last, however, if recession risks and fears accelerate. There are good reasons to believe this is in the cards.

Indications from the initial batch of November purchasing managers index (PMI) data released so far show that private sector business activity is weaker than forecast and in many countries is contracting, most notably in the United States.

In Asia, Japan's manufacturing activity is shrinking at its fastest pace in two years, flash estimates showed. Investors will be paying close attention to the PMI reports for most other Asian countries - including economic heavyweights China, South Korea and India - due out on Dec. 1.

Fed officials, meanwhile, left markets a Thanksgiving morsel to chew over from their latest policy meeting minutes. A U.S. recession next year, they wrote, is "almost as likely as the baseline (forecast)."

Wall Street dismissed this on Wednesday, but it can't do so for long. Surely.

For now though, equity investors' glass is half full. The MSCI Asia ex-Japan Index is on course to post its fourth consecutive weekly rise, and so far in November it is up 14%. This would be its best month since March 2009 and one of its best on record.

Of course this comes at the tail end of a brutal year for world markets in which Asia has suffered from soaring U.S. interest rates and historically weak domestic currencies.

Like stocks, regional FX markets are enjoying a period of relative calm as weaker U.S. inflation readings have weighed on the dollar. Some have consolidated more than others: recent intervention has boosted the yen, and the Thai baht has appreciated six weeks in a row.

Investors will be hoping for more consolidation and calm on Friday, leaving the potential PMI fireworks for next week.

Three key developments that could provide more direction to markets on Friday:

- Japan Tokyo inflation (October)

- Malaysia inflation (October)

- Singapore industrial production (October)

(Reporting by Jamie McGeever in Orlando, Fla.; Editing by Josie Kao)

COMMENTS

More Related News

Italy taps local defense companies to work on next-gen warplane
Italy taps local defense companies to work on next-gen warplane

Leonardo, Elettronica, Avio Aero and MBDA Italia will support Italy's early work for the envisioned Global Combat Air Programme with the U.K. and Japan.

Japan, Netherlands to Join US in Chip Controls on China
Japan, Netherlands to Join US in Chip Controls on China

(Bloomberg) -- Japan and the Netherlands are poised to join the US in limiting China's access to advanced semiconductor machinery, forging a powerful...

Asian markets build on rally on hopes US will avoid recession
Asian markets build on rally on hopes US will avoid recession

Asian markets rose again Friday as fears about a possible recession in the US economy were soothed by data showing it grew more than expected in 2022, adding...

Goldman Sees Highest Base Pay Hike Since 1993 in Japan Talks
Goldman Sees Highest Base Pay Hike Since 1993 in Japan Talks

(Bloomberg) -- Goldman Sachs Group Inc. raised its forecasts for Japan's upcoming spring wage negotiations, expecting the highest base pay hike in three...

Asian shares at 9-month high after resilient U.S economic data
Asian shares at 9-month high after resilient U.S economic data

Asian stocks rose on Friday and were poised for their fifth straight week of gains after data highlighted a resilient U.S. economy, boosting investor...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Beth's Coat On Yellowstone
    (2022-11-25 11:09:21Z)

    Thanks for sharing informative post. It is one of the best site that I have visited. Hope you will share more quality blog posts thank you.

    REPLY

Top News: Business