Asian Markets Rise Amid US Economic Uncertainty
The Asian markets have started the week on a positive note, led by semiconductor makers' stocks. The Nikkei rose 2% while South Korea's Kospi climbed around 3% to 6,900. Some traders pointed to an upbeat outlook from Goldman Sachs predicting a further 75% rise in the Kospi to 12,000.
However, the focus is shifting towards the US market and the upcoming August CPI report on Friday. A high reading could pile pressure on the Federal Reserve to hike rates this month, with Fed funds futures indicating around a 57% chance of a September move and a 70% chance for October. President Donald Trump has also threatened to cut off trade with countries running a trade surplus with the US if the Fed doesn't slash interest rates.
The euro is little changed at $1.1608, while Brent crude oil prices have risen 0.6% to $96.85 per barrel. The higher fuel prices could further increase inflationary pressures and raise concerns about the Fed's decision-making process.