Asian markets traded sideways ahead of the rate decisions from the U.S. Federal Reserve and the Bank of Japan. Investors were also on backfoot after crude oil prices jumped to a one-year high, stoking fears of a rebound in inflation.
Market indexes in Tokyo advanced for the fourth day in a row but indexes in China struggled in the face of ongoing property market woes and a slump in exports. India indexes hovered near record highs.
Global markets rallied in the first half and market indexes in the U.S., Europe, Japan and India soared on the back of weaker inflation and stronger-than-expected economic data. U.S. mega-cap tech stocks surged and the Japanese yen dropped to a new low in the year.
China's consumer prices rose at a modest pace in May but wholesale prices fell at the sharpest pace in seven years and declined for the eighth month in a row.
The Organization for Economic Cooperation and Development revised the global economic growth outlook slightly higher for 2023 but held its estimate for 2024. The sharp decline in energy prices and food inflation is expected to increase real income and contribute to faster economic growth.
China's goods exports rose for the second month in a row but the decline in imports deepened for the seventh month in a row in April on weak domestic demand.
Singapore government doubled additional stamp duty levied on residences purchased by foreigners and also hiked for the second and third homes purchased by citizens and permanent residents.
The World's second largest economy expanded at a faster-than-expected pace in the first quarter after Beijing stepped up credit and other measures for infrastructure projects.
The European Central Bank lifted its key lending rates by 50 basis points and said it has a long way to go to cool inflation to its target level. The central bank also lowered its inflation estimate in 2023 and beyond and revised slightly higher economic growth outlook.
Automobile sales declined for the fourth year in a row and dropped to a 45-year low as automakers struggle with weak demand, supply chain disruptions and chip shortages.
The ECB is struggling to bring down inflation above 10% to its target range of 2%. But higher rates are not impacting inflation trend and may have to take additional steps in restricting economic activities.
Despite the booming oil and agriculture commodities export, Brazil's economy has lost dynamism in the last two decades and remains trapped in the downward draft.
