Asia-Pacific Markets See Quiet Day with Hawkish Tone from Central Bankers

The Asia-Pacific market news was relatively quiet on Tuesday due to Japanese markets being closed for holidays. However, central bankers from various countries provided insights into their views on inflation and monetary policy.

Boston Fed President Susan Collins stated that the renewal of combat in the Middle East in August was a key reason she supported last week's quarter point rate rise to about 3.9%. She also mentioned that she has pencilled in a second rate hike this year, but expects rates to remain unchanged in 2027.

European Central Bank Executive Board member Philip Lane expressed optimism about European growth, citing steady moderate pace provided the current energy shock does not intensify. He added that a second wave of energy price increases will push inflation higher before it declines toward the ECB's target from mid-2027 onward.