SYDNEY- Share markets were mixed in Asia on Monday ahead of a week brimming with economic news that should underline the relative outperformance of the United States and support the dollar’s ongoing bull run.
Political uncertainty remained as reports suggested embattled Canadian Prime Minister Justin Trudeau might announce his resignation as early as Monday.
Markets seemed to have priced it in and might welcome an election to clarify matters, so the US dollar dipped 0.3 percent on its Canadian cousin to 1.4404
The star of the US data line up is the December payrolls report on Friday, where analysts expect a rise of 150,000 with unemployment holding at 4.2 percent.
These will be previewed by data on ADP hiring, job openings and weekly jobless claims, along with surveys on manufacturing, services and consumer sentiment.
Anything upbeat would support the case for fewer rate cuts from the Federal Reserve, and markets have already scaled back expectations to just 40 basis points for 2025.
Minutes of the Fed’s last meeting due Wednesday will offer color on their dot plot predictions, while there will be plenty of live comment with at least seven top policy makers speaking including influential Fed Governor Christopher Waller.
Inflation figures from the EU and Germany this week will refine the outlook for more rate cuts from the European Central Bank, while China’s consumer prices on Thursday is expected to support the case for further stimulus there.
With so much event risk ahead, investors were understandably cautious and global indexes were mixed. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6 percent, having lost 1 percent last week.
Japan’s Nikkei returned from holiday to drop 1.8 percent, pressured in part by a rise in JGB yields to the highest since 2011. South Korean stocks rallied 1.6 percent, though the fate of President Yoon Suk Yeol seems no clearer.
