Stock prices in Asia rise ahead of US inflation report and Fed minutes

Tokyo In anticipation of a further interest rate hike by the US Federal Reserve due to the tense situation on the labor market, investors in Asia stock up on fresh stocks at the start of the week. The Tokyo Stock Exchange closed higher. The Dax will be closed on Easter Monday.

With fears of a recession mounting, investors are betting that the turmoil in the banking system triggered by the sudden collapse of Silicon Valley Bank in March will force central banks to correct their course.

For example, some market participants are increasingly convinced that the Fed will cut interest rates in the second half of the year in order to stave off an economic downturn. “Investors expect bank failures to force policymakers to cut interest rates, but stubborn inflation means the Fed is unlikely to ease policy this year,” said Mansoor Mohiuddin, chief economist at the Bank of Singapore.