Asian Stock Market: Modestly positive as S&P500 futures recover, oil extends losses, US Inflation eyed

• Asian indices are trading positive amid a recovery in the S&P500 futures.
• Investors have started discounting the higher consensus for US inflation.
• Oil prices have hit a fresh three-month low on escalating recession fears.

Markets in the Asian domain are trading modestly positive as the S&P futures have rebounded in the Asian session. The US indices futures have displayed some recovery as investors have discounted the higher consensus for the US Consumer Price Index (CPI). Also, the US dollar index (DXY) has started correcting after a mild recovery.

At the press time, Japan’s Nikkei225 added 0.51%, China A50 gained 0.46%, Hang Seng jumped 0.74% and Nifty50 rose 0.44%.

The market participants are entirely focusing on the release of the inflation rate and a sideways movement is expected today. The inflation rate is seen higher at 8.8% on an annual basis. This may compel the Federal Reserve (Fed) to paddle up the interest rates further. No doubt, the extent of the rate hike would be akin to the prior interest rate decision as price pressures are scaling higher despite the former rate hikes and balance sheet reduction announcement.

In Asia, renewed lockdown worries in China are trimming the growth forecasts. The economy carries good trade relations with various Asian countries and a slump in demand forecasts in China will have multiplier effects on other nations.

On the oil front, accelerating recession fears have dragged the oil prices to near $92.00. The black gold has dropped below its three-month low and more downside looks warrant as Western central banks have not done with rate hike campaign.