Rates Set by New Zealand and Indonesia; Nvidia Watch Nearing End

Asian markets are in focus on Wednesday as investors await monetary policy decisions from New Zealand and Indonesia. The debate over the timing of the first U.S. rate cut continues to influence market sentiment, while equity markets assess their next move.

After a seven-day winning streak, Asian stocks retreated on Tuesday, with the MSCI Asia ex-Japan index slipping 0.9% – its biggest fall in over a month. Despite this, Wall Street saw gains, with the Nasdaq reaching a new peak ahead of Nvidia’s first-quarter earnings report.

Federal Reserve officials emphasized patience regarding interest rates, suggesting that it may be several months before a rate cut is considered. With many global stock markets at record highs, a period of cooling may be on the horizon.

Prominent bear Marko Kolanovic of JP Morgan remains cautious on U.S. stocks, citing high valuations. However, he is more optimistic about Asian markets, particularly Japanese and Chinese equities.

Investors in Asia are also keeping an eye on Japanese trade data and South Korean producer price inflation. The Reserve Bank of New Zealand and Bank Indonesia are expected to keep their key interest rates unchanged, with the RBNZ likely to cut rates only once this year.

Bank Indonesia surprised markets last month with a rate hike to support the rupiah, but is expected to maintain rates for the time being. Governor Perry Warjiyo emphasized the central bank’s efforts to strengthen the rupiah.

As markets await further developments, the rupiah closed trading on Tuesday at 15,990 per dollar. Stay tuned for more updates on the monetary policy decisions and key economic data shaping market trends in Asia.