In today’s trading session, most Asian stocks significantly gained ground, as investors turned their heads towards a US inflation report and its implications for potential interest rate cuts by the Federal Reserve. 

Investors need to take note of the US consumer inflation expectations data that was released on Monday as the figures show that consumer inflation expectations held steady at 3%. However, economists are anticipating a decrease in consumer inflation expectations to 2.9%. 

In Japan, investors ought to take into account Japan’s consumer confidence and machinery orders. This means that an uptick in consumer confidence might bring consumer spending and inflation driven by demand. This could prompt the Bank of Japan to adopt a more hawkish approach to inflation management. Consequently, there might be an increase in buyer demand for the Japanese Yen, potentially affecting export stocks listed on the Nikkei.

Economists forecasted consumer confidence has increased from 39.1 to 40.0 in March. As consumer prices showed an uptrend in January and February, along with a robust job market and a flourishing economy, traders have frequently adjusted their projections for monetary policy easing this year. Some are now considering the possibility of no cuts until 2025.

Meanwhile, the trajectory of machine tool orders might also influence the rate decisions of the Bank of Japan. Seeing an improving demand landscape could lead investors to anticipate a shift in the Bank of Japan away from zero rates.

In today’s morning trading session, Japan’s Nikkei 225 surged by 0.8% trading at 39,562.94 while the Japanese Yen remained subdued as the US dollar inched up to 151.87 Japanese Yen, nearing its 34-year peak of 151.97 Yen achieved in late March. 

The Hang Seng index continued to move upward, advancing by 0.6%, trading at 16,824.36, while the Shanghai Composite index went down by 0.2% to 3,040.00

In South Korea, the Kospi witnessed a slight decline of 0.1% settling at 2,714.68, while in Australia, the S&P/ASX 200 went up by 0.6% racing 7,832.10