news/AMZN/2023.01.29/Asia shares turn cagey as rate hikes, earnings loom.txt

*Asian stock markets: https://tmsnrt.rs/2zpUAr4*Fed seen hiking 25bp this week, ECB and BOE by 50bp*Tech giants lead host of earnings results*China shares up as holiday travel surgesSYDNEY, Jan 30 (Reuters) - Asian shares turned cagey on
Monday ahead of a week that is certain to see interest rates
rise in Europe and the United States, along with U.S. jobs and
wage data that may influence how much further they still have to
go.Earnings from a who's who of tech giants will also test the
mettle of Wall Street bulls, who are looking to propel the
Nasdaq to its best January since 2001.Asia has been no slouch either as China's swift reopening
bolsters the economic outlook, with MSCI's broadest index of
Asia-Pacific shares outside Japan up 11% in
January so far at a nine-month high.The index was off 0.2% on Monday with markets mixed across
the region. Japan's Nikkei went flat, while Taiwan
jumped 3.1%.The Nikkei newspaper reported Renault was to lower
its share holding in Nissan to 15%, while the latter
would invest in Renault's EV business.Chinese blue chips climbed 1.1% after returning
from the holidays. Beijing reported Lunar New Year travel trips
inside China surged 74% from last year, though that was still
only half of pre-pandemic levels.S&P 500 futures and Nasdaq futures both eased
0.3%, while EUROSTOXX 50 futures and FTSE futures
dipped 0.2%.Investors are confident the Federal Reserve will raise rates
by 25 basis points on Wednesday, followed the day after by
half-point hikes from the Bank of England and European Central
Bank, and any deviation from that script would be a real shock.Just as important will be the guidance on future policy with
analysts expecting a hawkish message of inflation is not yet
beaten and more needs to be done."With U.S. labor markets still tight, core inflation
elevated, and financial conditions easing, Fed Chair Powell's
tone will be hawkish, stressing that a downshifting to a 25bp
hike doesn't mean a pause is coming," said Bruce Kasman, chief
economist at JPMorgan, who expects another rise in March."We also look for him to continue to push back against
market pricing of rate cuts later this year."There is a lot of pushing to do given futures
currently have rates peaking at 5.0% in March, only to fall back
to 4.5% by year end.EYEING APPLEYields on 10-year notes have fallen 33 basis
points so far this month to 3.50%, essentially easing financial
conditions even as the Fed talks tough on tightening.That dovish outlook will also be tested by data on U.S.
payrolls, the employment cost index and various ISM surveys.Figures on EU inflation could be important for whether the
ECB signals a half-point rate rise for March, or opens the door
to slowdown in the pace of tightening.As for Wall Street's recent rally, much will depend on
earnings from Apple Inc, Amazon.com, Alphabet
Inc and Meta Platforms, among many others."Apple will give a glimpse into the overall demand story for
consumers globally and a snapshot of the China supply chain
issues starting to slowly abate," wrote analysts at Wedbush."Based on our recent Asia supply chain checks we believe
iPhone 14 Pro demand is holding up firmer than expected," they
added. "Apple will likely cut some costs around the edges, but
we do not expect mass layoffs."Market pricing of early Fed easing has been a burden for the
dollar, which has lost 1.6% so far this month to stand at
101.790 against a basket of major currencies.The euro is up 1.5% for January at $1.0878 and
just off a nine-month top. The dollar has even lost 1.3% on the
yen to 129.27 despite the Bank of Japan's dogged
defence of its uber-easy policies.The drop in the dollar and yields has been a boon for gold,
which is up 5.8% for the month so far at $1,930 an ounce.China's rapid reopening is seen as a windfall for
commodities in general, supporting everything from copper to
iron ore to oil prices.The oil market was hesitant on Monday, with Brent
off 11 cents at $86.55 a barrel, while U.S. crude eased 3
cents to $79.65.(Reporting by Wayne Cole; Editing by Christopher Cushing)