This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets are largely set to fall on Friday, mirroring moves on Wall Street after comments from U.S. Federal Reserve officials heightened fears among investors that the central bank could hold off on rate cuts.
Minneapolis Fed President Neel Kashkari also commented Thursday afternoon that he wondered if the central bank should cut rates at all if inflation remained sticky.
Oil prices also continued to rise, with WTI crude prices surpassing $86 a barrel to test six-month highs. Brent crude prices also set a new six-month high, standing at $90.65.
Investors in Asia will watch Japan’s household spending report for February, which was the last month of spending data before generous pay raises were secured by Japan’s unions in the shunto wage negotiations in March.
S&P will also release business activity numbers for Hong Kong, and the Reserve Bank of India will also announce its rate decision Friday. A Reuters poll of economists expect the RBI to hold its benchmark lending rate at 6.5%.
In Australia, the S&P/ASX 200 slipped 0.68% at the open.
Japan’s Nikkei 225 is also set to fall after briefly crossing the 40,000 mark on Thursday, with the futures contract in Chicago at 39,150 and its counterpart in Osaka at 39,090 against the index’s last close of 39,773.14
In contrast, Hong Kong’s Hang Seng index is expected to return from a public holiday stronger, with HSI futures at 16,860, compared to the HSI’s close of 16,725.1.
Overnight in the U.S., all three major indexes lost ground, with the Dow Jones Industrial Average falling 1.35% to record its worst session since March 2023, and logging its fourth consecutive losing day.
The S&P 500 dropped 1.23%, while the tech-heavy Nasdaq Composite saw the largest loss of 1.40%.
— CNBC’s Pia Singh and Hakyung Kim contributed to this report.
CNBC Pro: Loads of analysts just hiked price targets for these 6 stocks — giving one 82% upside
Analysts have become more bullish on six stocks from around the world this week, raising their price targets.
The price target changes come ahead of the next earnings season covering the first quarter of this year.
CNBC Pro screened for global stocks that have received price target upgrades from five or more analysts in the past seven days and have a potential upside of over 25%.
CNBC Pro subscribers can read more about the six stocks here.
— Ganesh Rao
CNBC Pro: From Nvidia to Boeing: Portfolio manager reveals the stocks she’s loving on right now
Portfolio manager Barbara Doran has revealed a number of her favorite stocks, reiterating a bullish outlook on the stock market more broadly.
“People are reluctant to embrace this bull market after a couple of years of deep skepticism. But this is what bull markets do. They make new highs,” she told CNBC.
Her top picks include top-performer Nvidia, embattled aerospace giant Boeing and more.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
U.S. crude oil cracks $86 as tensions mount between Israel and Iran
Crude oil futures rose Thursday, recouping losses from earlier in the session as tensions in the Middle East continue to mount.
The West Texas Intermediate contract for May delivery gained $1.16, or 1.36%, to settle at $86.59 a barrel. The Brent contract for June delivery advanced $1.30, or 1.45%, to $90.65 a barrel. It was the highest settle for both since Oct. 20.
The Jerusalem Post reported that Israeli embassies had been put on high alert after Iran vowed retaliation over a missile strike on its consulate in Damascus earlier this week. Israel Defense Forces have cancelled home leave for combat troops amid mounting tensions with Tehran, according to the Times of Israel.
Oil prices have rallied this year, booking three consecutive months of gains with U.S. crude adding nearly 21% while Brent is up 7.7%. The rally has been driven by mounting geopolitical tensions and a tightening global crude market.
— Spencer Kimball
Kashkari warns that rate cuts won’t happen unless inflation eases further
Minneapolis Federal Reserve President Neel Kashkari on Thursday expressed caution that interest rate cuts might not happen this year unless there’s more progress on inflation.
“If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,” Kashkari said during an interview with Pensions & Investments, according to a Reuters account. “There’s a lot of momentum in the economy right now.”
Kashkari, a nonvoter this year on the Federal Open Market Committee, is the second central banker this week to dampen rate-cut talk. On Wednesday, Atlanta Fed President and FOMC voter Raphael Bostic said on CNBC that he envisions just one cut this year, and likely not until the fourth quarter.
—Jeff Cox
Richmond Fed’s Barkin advocates patience on rate cuts
Richmond Federal Reserve President Thomas Barkin added to the recent cautionary tone from monetary policymakers, saying Thursday that a strong economy gives time to watch the inflation data for progress.
“While I don’t see the economy overheating, the Fed knows how to respond if it does. And, if the economy slows, the Fed has enough firepower to support it as necessary,” Barkin said during a speech in his home district. “In the interim, I think it is smart for the Fed to take our time.”
Noting that inflation data this year has been “a little less encouraging,” he said the strong labor market and macro economy allow Fed officials “time for the clouds to clear” before cutting.
—Jeff Cox