Asian shares firmed on Friday as Singapore became the latest country to pause its policy tightening and markets became more confident the likely next hike in U.S. rates would be the last this cycle.
The U.S. dollar tumbled to a one-year low against a basket of currencies on Friday while the euro hit a one-year peak, as traders ramped up expectations of an imminent end to the U.S. Federal Reserve's rate-hike cycle on signs of cooling inflation.
Singapore’s economy shrank more than expected in the first quarter of 2023, marking a sluggish start to the year as a slowdown in the country’s key manufacturing sector deepened, while other facets of the economy also saw slowing growth.
Core inflation rates in the euro zone will begin improving in the coming months, but the European Central Bank still has a way to go with monetary policy, ECB policymaker Joachim Nagel said on Thursday.
Bank of England Chief Economist Huw Pill said on Thursday that the latest data on the economy, including a stagnation of gross domestic product in February, is "somewhat disappointing" even if it remains better than forecast by the BoE late last year.
China's exports unexpectedly surged in March, with officials flagging rising demand for electric vehicles, but analysts cautioned the improvement partly reflects suppliers catching up with unfulfilled orders after last year's COVID-19 disruptions.