3 days ago
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By Jamie McGeever
(Reuters) - A look at the day ahead in Asian markets.
Signs of life being breathed back into China's economy and a strong rally on Wall Street on Friday bode well for Asian markets on Monday, although nervousness around President-elect Donald Trump's inauguration could temper the optimism.
U.S. markets will be closed for Martin Luther King Jr. Day, so global liquidity will be lighter than usual, and U.S. debt ceiling jitters are back in sharp focus. Further reason, perhaps, for investors in Asia to tread lightly.
Investors have broadly welcomed the 'market-friendly' parts of Trump's expected agenda like tax cuts and deregulation. But other parts, like tariffs and mass deportations, could rekindle inflation and slow the pace of Fed rate cuts.
Furthermore, higher-for-longer rates could damage growth and stoke 'stagflation' concerns, making the Fed's job even more difficult. His inauguration speech could be laden with marke...
