Nasdaq rises as inflation concerns ease

In the United States, a recent report indicated that the consumer price index increased by 0.2% month-on-month in February, resulting in an annual inflation rate of 2.8%. This inflation reading was perceived as welcome relief for investors, easing fears of an impending recession. Notably, Vishnu Varathan, head of macro research in Asia excluding Japan at Mizhuo Bank, emphasized that February's inflation figures would not reflect tariff impacts, suggesting the current state of inflation is manageable at this time. Despite the positive inflation figures in the U.S., Asian stock markets experienced declines, with Japan’s benchmark Nikkei 225 ending flat and the Kosdaq sliding by 0.92%. Investors are closely watching the Indian stock market, particularly after India's inflation rate cooled to 3.61% in February, influenced by decreasing vegetable prices. Although it's expected to rise to around 3.8% in March, maintaining inflation below 4% in the first quarter of 2025 seems plausible due to subdued demand and increased crop output. Meanwhile, in the U.S. markets, the Nasdaq Composite rebounded following the inflation release, with a 1.22% increase, closing at 17,648.45. The S&P 500 also saw a gain of 0.49%, ending at 5,599.30. In contrast, the Dow Jones Industrial Average declined slightly by 0.2%. This rebound in U.S. technology shares reflects a shift in investor sentiment, with companies like Meta Platforms rising by 2% and Tesla gaining more than 7%. Over the following days, all eyes will also be on the potential acquisition of the Japanese retail giant Seven & i by Couche-Tard, which could become Japan's largest ever foreign buyout if successful. Couche-Tard has faced regulatory obstacles in its pursuit but remains in discussions with Seven & i's new CEO. Such developments further highlight the complex landscape of global financial markets amidst changing inflation dynamics.