Economy
Asian Markets Await US Inflation Data Amid China Economic Concerns
Asian markets faced challenges on Tuesday (12 September) in their attempt to follow the positive trends in Wall Street and Europe. Investors are anxiously awaiting the release of US inflation data, while lingering concerns about China’s economy continue to weigh on sentiment.
The upcoming consumer price index (CPI) report holds significant importance as it influences the Federal Reserve’s policy decisions. The next Fed meeting is expected to result in interest rates being maintained, but market participants will closely analyze the accompanying statement for insights into the central bank’s future plans.
Equities have encountered difficulties this month due to fears that strong economic indicators and a robust job market may prompt the Fed to implement further tightening measures this year to combat inflation. The situation is further complicated by mixed signals from Fed officials, with some advocating for rate hikes and others favoring a wait-and-see approach to gauge the impact of over a year of rate adjustments.
Fed Chairman Jerome Powell has emphasized that decisions will be data-driven, causing investors to interpret weak economic data as positive news for the future interest rate outlook.
Chris Larkin, Managing Director of Trading and Investing at E*Trade from Morgan Stanley, noted, “This week is more likely to be a ‘good news is good, bad news is bad’ story. The market’s ability to rebound in the near term could hinge on this week’s inflation numbers, especially Wednesday’s CPI.”
Leading economists from major global banks have expressed the view that the Fed is unlikely to implement further rate hikes and may begin reducing borrowing costs in the new year. They also predicted that the United States will avoid a recession. Simona Mocuta, Chair of the 14-member American Bankers Association’s Economic Advisory Committee, stated, “Given both demonstrated and anticipated progress on inflation, the majority of the committee members believe the Fed’s tightening cycle has run its course.”
Meanwhile, tech firms led a surge in all three major indexes on Wall Street, while Asian markets displayed mixed performance. Tokyo, Taipei, and Manila saw slight gains, but Hong Kong, Shanghai, Seoul, Sydney, Singapore, Wellington, and Jakarta all experienced declines.
Concerns about China’s economy continue to dampen investor sentiment, despite some signs of improvement such as a return to inflation and a smaller-than-expected decline in exports and imports. There are calls for the Chinese government to unveil a substantial stimulus package akin to the one implemented during the 2008 global financial crisis to boost growth and support the property sector.
In the currency markets, the Japanese yen slightly weakened against the US dollar after receiving a boost from comments by the Bank of Japan’s head, hinting at a potential shift away from the current ultra-loose monetary policy.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
