The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
View all Reports
Markets 3 MIN READ

As CPI risk clears … it’s lift off!

May 16, 2024By Reuters
Related Articles
South Korean shares end quarter 11% higher March 31, 2023 Japan Inc.’s value boost plan lacks key endorsement January 16, 2024 Gold poised for second week of declines on hawkish Powell remarks November 10, 2023

It’s ‘green for go’ in Asia on Thursday as stock markets around the world roar to fresh highs, boosted by renewed optimism that the Federal Reserve will soon start cutting US interest rates following benign inflation figures on Wednesday.

The most notable exception is China, where the threat of outright deflation continues to loom large over the economy and depress risk appetite, while the yen’s rebound on Wednesday could halt the Japanese equity revival in its tracks.

Otherwise, the market mood could barely be more positive. Stocks are on fire, bond yields are sliding to the lowest levels in months, the dollar is retreating and appetite for riskier investments like emerging market assets is strong.

While one data point does not a trend make, investors have latched onto the US inflation report for April as evidence the Fed can start cutting rates soon – July is back in play and 50 basis points of cuts this year is now fully priced.

Economists at UBS highlighted one particularly interesting nugget from the data – April marked the 16th time in 18 months when the non-seasonally adjusted core CPI one-month change was below the change 12 months prior. Maybe a trend is in place?

That’s the bullish backdrop for investors in Asia who also have several key local events to navigate on Thursday, including first-quarter Japanese GDP, Australian unemployment, and a monetary policy decision from the Philippines.

First-quarter GDP data from Japan are expected to show Asia’s second-largest economy contracted an annualized 1.5% in the January-March period, signaling a quarterly decline of 0.4%, according to a Reuters poll.

All key drivers of growth are expected to have gone into reverse in the quarter, not a particularly conducive environment for further rate hikes from the Bank of Japan.

But that’s exactly what markets are expecting – 25 bps of tightening is now in the 2024 money market curve, bond yields are rising and the 10-year US-Japan yield spread on Wednesday shrank to less than 340 bps, the narrowest since March.

The yen rallied 1% on Wednesday. Excluding April 29 and May 1, the two days of suspected yen-buying Japanese intervention, it was the currency’s best day this year.

Chinese assets are struggling more, mirroring the wider gloom hanging over the economy and the difficult choices policymakers face in lifting it. Sentiment will have been dampened further by Washington’s new tariffs on some imports from China.

It’s a big day for Chinese company news on Thursday, with heavyweights Baidu and JD.Com both reporting first-quarter earnings.

In the Philippines, meanwhile, the central bank is expected to keep its key policy rate unchanged at 6.50%, and not lower it until the final quarter of this year, according to a Reuters poll.

Here are key developments that could provide more direction to markets on Thursday:

– Japan GDP (Q1)

– Australia unemployment (April)

– Philippines central bank decision

(Reporting by Jamie McGeever; Editing by Josie Kao)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up