Asian markets showed mixed trading on Tuesday following the reopening of Chinese markets after the Lunar New Year holiday. Wall Street remained closed on Monday for President’s Day, with investors growing less optimistic amid expectations of impending interest rate hikes. China’s central bank maintained its 1-year loan prime rate but reduced its 5-year rate by 25 basis points to 3.95%. The Hang Seng in Hong Kong dropped 0.3%, while the Shanghai Composite fell 0.1%. Japan’s Nikkei 225 initially gained but ended nearly unchanged, inching up less than 0.1%. Australia’s S&P/ASX 200 slipped 0.3%, and South Korea’s Kospi fell almost 1.0%.
A recent U.S. report on wholesale inflation suggested that rising prices persist, dampening hopes for potential interest rate cuts by the Federal Reserve in March. In energy markets, U.S. benchmark crude rose by 26 cents to $79.43 a barrel, while Brent crude, the international standard, dipped by 2 cents to $83.54 per barrel. Currency trading saw the U.S. dollar strengthening against the Japanese yen to 150.32 from 150.10 yen, while the euro weakened to $1.0765 from $1.0783.
