Asian equities looked set for a choppy start to October after late-session Wall
Street swings erased earlier gains from softer-than-expected US inflation data.
US crude oil held previous-session gains. Thursday Asian index futures pointed
to declines in Korea and Australia and gains in Japan. Fifth Third Wealth
Advisors CIO Chris Osmond said Wednesday’s data represented a “Goldilocks
combination”: Q2 growth stronger than expected, consumer spending firmer, a
September rebound in the labour market and the Fed‑preferred inflation gauge
well below forecasts. The package supports risk assets and materially lowers the
odds of an October Fed rate hike while keeping a Q4 hike possible. Inflation
risks remain: Middle East conflict, heavy AI investment and a strong US economy
are lifting prices and bond yields, leaving global government bonds on track for
their weakest quarter so far in 2024.
