# Asia shares edge higher, wary of US bank data Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-08 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Asian Shares Edge Higher Amid US Bank Data Concerns Meta Description: Explore how Asia shares are impacted by concerns over US bank data and potential credit crunch, affecting investor sentiment and market movements. URL: https://financedigest.com/asia-shares-edge-higher-wary-of-us-bank-datahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-08t005749z2lynxmpej4700krtroptp4global-markets-1736814058215-compressed.jpg) # Asia shares edge higher, wary of US bank data By Wayne Cole SYDNEY (Reuters) – Asian shares were mostly higher on Monday as investors braced for a week where U.S. inflation data will test wagers the next move in interest rates will be down, while [worries about a possible credit crunch weighed](https://www.financedigest.com/logitech-q4-sales-plunge-22-as-economic-downturn-worries-weigh.html "Logitech Q4 sales plunge 22% as economic downturn worries weigh") on the dollar. Friday’s robust U.S. payrolls report has already delivered a setback to easing hopes and any upside surprise on consumer [prices would challenge bets for a rate cut](https://www.financedigest.com/ks-cuts-2023-profit-outlook-on-slow-recovery-lower-potash-prices.html "K+S cuts 2023 profit outlook on slow recovery, lower potash prices") as soon as September. [Forecasts are for a rise](https://www.financedigest.com/scaffolding-market-is-prophesied-to-rise-at-6-1-of-cagr-during-the-forecast-period-between-2018-and-2026.html "Scaffolding Market is prophesied to rise at 6.1% of CAGR during the forecast period between 2018 and 2026") of 0.4% in April for both the headline and core CPI, with the annual pace of core inflation slowing just a tick to 5.5%. Later Monday, the Federal Reserve’s survey of loan officers will draw an unusual amount of attention as [markets seek to gauge the impact of regional banking](https://www.financedigest.com/the-stem-cell-banking-market-to-keep-up-the-digitized-momentum.html "The Stem Cell Banking Market to keep up the digitized momentum") stress on lending. The [survey should point to further broad-based tightening in bank](https://www.financedigest.com/ninety-percent-banks-lag-ability-authenticate-customers-step-security-survey-reveals.html "Ninety Percent of Banks Lag in Ability to Authenticate Customers and Step-Up Security, Survey Reveals") lending standards,” said Bruce Kasman, head of economic research at JPMorgan. Continued stress in the banking system does, of course, increase concern that a disruptive [financial market](https://www.financedigest.com/forget-the-funnel-financial-marketing-must-become-a-virtuous-circle.html "Forget the funnel: Financial marketing must become a virtuous circle") event is on the horizon,” he added. “Though our analysis suggests that the impact of a credit tightening against an otherwise healthy backdrop tends to be limited.” Caution made for a slow start in [markets and MSCI’s broadest index of Asia-Pacific shares](https://www.financedigest.com/energy-utilities-sector-to-hold-60-share-in-switchgear-monitoring-system-market-by-2031.html "Energy & Utilities Sector To Hold 60% Share In Switchgear Monitoring System Market By 2031") outside Japan edged up 0.7%, while Japan’s Nikkei eased 0.6%. Chinese blue chips gained 1.1% ahead of [data on trade and inflation due later](https://www.financedigest.com/invest-in-data-management-now-and-reap-the-rewards-sooner-than-later.html "Invest in data management now and reap the rewards sooner than later") in the week. EUROSTOXX 50 [futures added 0.1%, while FTSE futures were closed for a holiday](https://www.financedigest.com/one-in-three-brits-daydream-about-future-holidays-to-get-through-the-working-day.html "One in three Brits daydream about future holidays to get through the working day"). S&P 500 [futures and Nasdaq futures were both little changed](https://www.financedigest.com/einride-to-change-the-future-of-transport-with-worlds-first-sustainable-self-driving-t-pod.html "Einride to change the future of transport with world’s first sustainable self-driving ‘T-pod’"), after jumping on Friday in the wake of Apple’s upbeat results. \[.N\] While the S&P 500 is up almost 8% for the year so far, all of that is due to just five mega [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") which have collectively risen by 29% so far this year and trade at a 49% premium to the rest of the index. ## HITTING THE CEILING Bond [markets were still stinging from the strong payrolls report](https://www.financedigest.com/lyocell-fibers-market-overview-highlighting-major-drivers-trends-growth-and-demand-report-2019-2027.html "Lyocell Fibers Market Overview Highlighting Major Drivers, Trends, Growth and Demand Report 2019- 2027") with U.S. [two-year yields up at 3.93% after briefly getting as low](https://www.financedigest.com/world-food-prices-fall-to-two-year-low-in-may-un-food-agency.html "World food prices fall to two-year low in May – UN food agency") at 3.657% last week. Not helping has been the risk of a U.S. government default with U.S. Treasury Secretary Janet Yellen on Sunday warning of a possible crisis should Congress not raise the [debt ceiling](https://www.financedigest.com/dollar-eases-before-inflation-data-with-nagging-worries-over-debt-ceiling-impasse.html "Dollar eases before inflation data, with nagging worries over debt ceiling impasse"). Futures imply a near 90% chance the Fed will keep rates [steady at its next](https://www.financedigest.com/biodiesel-market-is-estimated-to-expand-at-a-steady-cagr-of-3-over-the-next-ten-years.html "Biodiesel Market is estimated to expand at a steady CAGR of 3% over the next ten years") meeting in June, and a 75% probability of a cut in September. The market is still pricing in at least one more hike from the European Central Bank, while the [Bank of England](https://www.financedigest.com/explainer-why-is-bank-of-england-acting-again-what-next-in-the-uk-crisis-2.html "Explainer-Why is Bank of England acting again? What next in the UK crisis?") is widely expected to lift its rates by a quarter point on Thursday.. The diverging outlook on rates has underpinned the euro and pound, with the latter [hitting a one-year](https://www.financedigest.com/u-s-dollar-struggles-pound-hits-one-year-high.html "U.S. dollar struggles, pound hits one-year high") high on the U.S. dollar last week. The euro was holding at $1.1040 on Monday, just short of its recent top of $1.1096. “While it is premature to get too ‘beared up’ on the dollar until a clearer peak in U.S. [rates is seen](https://www.financedigest.com/global-shares-rise-dollar-rebounds-as-fed-seen-on-target-for-rate-hike.html "Global shares rise, dollar rebounds as Fed seen on target for rate hike"), the U.S. [banking sector](https://www.financedigest.com/a-2020-perfect-vision-for-the-financial-services-sector-what-will-your-bank-do-for-you.html "A 2020 ‘perfect vision’ for the financial services sector: what will your bank do for you? ") travails that have no easy/costless solutions, continue to make for a mildly bearish medium-term story,” said Alan Ruskin, head of global FX strategy at Deutsche Bank. Certainly it imposes more [growth constraints and a greater stagflationary bias than for major competing economies.”](https://www.financedigest.com/irish-domestic-economy-returns-to-growth-in-first-quarter.html "Irish domestic economy returns to growth in first quarter") The dollar has fared better on the yen as the Bank of Japan [remains](https://www.financedigest.com/will-hong-kong-remain-the-jurisdiction-of-choice-for-offshore-banking.html "Will Hong Kong Remain The Jurisdiction Of Choice For Offshore Banking?") the only central bank in the developed world to not have tightened policy. The [dollar stood at 134.80 yen](https://www.financedigest.com/dollar-gains-against-yen-as-fed-policy-debt-ceiling-in-focus.html "Dollar gains against yen as Fed policy, debt ceiling in focus"), with the euro at 148.75 and not far from its recent 15-year peak of 151.55. The prospect of a pause in U.S. [rate hikes](https://www.financedigest.com/uk-economy-almost-flat-lined-in-october-adding-to-rate-hike-doubts.html "UK economy almost flat-lined in October, adding to rate hike doubts") has been a boon for non-yielding gold which was holding at $2,021 an ounce after nearing a record high last week. \[GOL/\] [Oil prices have been going the other way as fears](https://www.financedigest.com/oil-climbs-almost-3-as-recession-fears-begin-to-fade.html "Oil climbs almost 3% as recession fears begin to fade") of a global economic slowdown eclipsed planned output cuts to see U.S. crude shed more than 7% last week. \[O/R\] Brent was last up 40 cents at $75.70 a barrel, while U.S. crude added 42 cents to $71.76 per barrel. (Reporting by Wayne Cole; Editing by Shri Navaratnam) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---