Asia’s stock market gains as US inflation data not as bad as predicted

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The value of the Swiss franc and yen fell sharply on Monday following data. That showed U.S. inflation remained below expectations late last week, easing investor fears about rising interest rates in the USA. The Japanese yen rose 0.7 percent to 107.05 per dollar. While the Swiss franc gained 1.1 percent to 0.9001 per dollar, rebounding from a three-month low. After sliding beyond parity on Friday for the first time since 2008.

The U.S. inflation data eased immediate concerns in markets over rising interest rates and falling market prices for assets already in question following December’s surprise U.S. interest rate hike, which has delayed any further hikes until there is more clarity about inflation trends, economists said…

Asian stocks climbed after U.S. inflation data was not as bad as expected.

Japan’s Nikkei 225 index closed up 1.0 percent while Hong Kong’s Hang Seng index gained 0.9 percent and South Korea’s Kospi rose 1 percent.

The Japanese yen fell against the U.S. dollar and the Swiss franc weakened after data showed U.S. import prices fell in January for the first time since last November, raising concerns about inflation staying below target for longer than expected in the USA, which could delay a rise in interest rates there from record lows.

The low inflation data added to continued worries over a global slowdown, while the Swiss franc climbed on reports that the holdings of central banks were holding back a rise in interest rates.

What is Economics?

The economics of a country, business, or person refers to how they use and allocate available resources. The resources available include land, labor and capital. This can be contrasted with the allocation of a society or government’s budget. In microeconomics, the first law of demand states “the higher the price of a good, the fewer people will demand.”

What is inflation?

Inflation is an economic condition in which prices rise over time; in general, this encourages sellers to increase their prices for goods and services as well. It also makes it difficult for buyers to determine whether an item’s price is fair or high enough, making it more difficult for people to estimate whether they are getting value for money from something.

What is a stock?

A stock is basically an amount of money that you hold, which represents ownership in a company. Investors purchase stocks in companies with the hope that they will increase in value.

What is a market economy?

A market economy refers to an economic system where the primary factors of production are allocated through markets and not by central planning or government direction. In this kind of economy, market prices and pricing signals dictate decisions on production, consumption, resource use, distribution and investment.

The main benefit of a market-based economic system is that it allows entrepreneurs to make decisions about what should be produced and how it should be distributed among various people in a society – without requiring centralized planning by a government agency.

What is Free trade?

Many countries have reduced barriers to trading with other nations as part of their commitment to free trade. Free trade is when countries can trade or buy and sell goods between themselves without any taxes, tariffs or restrictions. In the most extreme form of free trade, barriers to international trade are completely abolished, allowing anyone to buy and sell any product anywhere in the world.

What is Marxism?

Marxism is a materialist economic system that bases an economy around workers, in contrast to capitalism. Marxism advocates the abolition of private property and capitalism, replacing them with state ownership and coercive collective management. It holds that profits are the fruits of exploitative labor on the part of capitalists.

What is a global economy?

A global economy refers to an interconnected worldwide market where goods can be traded freely between different nations, independent of any government’s control or influence over markets. International trade has grown rapidly in the past few decades as a result of globalization (the expansion of international trade). Globalization refers to increasing connections among nations through increasing levels of international trade and communication.