On August 8, 2023, Asian markets showed weakness due to upcoming inflation data releases. The MSCI’s Asia-Pacific index rose 0.9%, yet remains down 2.8% this month.
Inflation concerns were the primary cause of Asian market weakness. China’s July inflation data release is scheduled for August 9. U.S. inflation data will follow on August 10. There are fears that these readings might surpass expectations, leading to tighter monetary policies and global growth constraints.
The ongoing U.S.-China trade war further troubles investors. Tariffs on billions of goods persist with no resolution in sight, amplifying uncertainty.
The near-term outlook for Asian markets is uncertain. Inflation worries and the U.S.-China trade feud will likely sustain market volatility.
However, if inflation readings are lower than expected and trade tensions ease, markets could recover.
