Asian Markets Slip as Global Slowdown Fears Mount Ahead of US Inflation Data
Asian markets began Thursday on a downbeat note, following a sell-off in Wall Street and concerns about a global economic slowdown. Key indices in the region, including the Sensex and Nifty in India, opened lower. Investors are eagerly awaiting US consumer price index data, which could influence the Federal Reserve's policy decisions.
The MSCI Asia-Pacific share index slipped 0.54%, nearing Wednesday's 2-1/2-year low. Indian equity markets mirrored this trend, with the Sensex index down 179.48 points at 57,446.43 and the Nifty index falling 35.65 points to 17,087.95. This reversal came after a sharp rally in the previous session.
The retreat in Indian markets can be attributed to losses in broader Asian bourses and anticipation of key US inflation data later in the day. The rally in Indian residential supplies on Wednesday was a temporary respite amidst this global stock market gloom. Meanwhile, crude oil prices continued their downward trajectory, not recovering from the 2% fall in the previous session, further adding to financial concerns about oil demand.
Markets are now focused on the US consumer price index data, which could determine if the Federal Reserve will introduce a fourth consecutive outsized interest rate hike. Federal Reserve Chair Jerome Powell is expected to announce the next actions related to the Fed's response to US consumer prices. In India, retail inflation rose to a five-month high of 7.41% in August, putting pressure on the Reserve Bank of India to raise interest rates.
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