CNBC Daily Open: Fed rate meet in focus

Nikkei leads Asia stocks: Japan stocks led gains in Asia on Monday as investors awaited the outcome of the central bank’s two-day policy meeting that could decide the fate of the world’s last negative interest rate regime. The Nikkei 225 and the Topix gained, while China’s CSI 300 index and Hong Kong’s Hang Seng also rose.

Wall Street ended lower: Wall Street ended lower on Friday as focus shifts to the Federal Reserve’s policy meeting this week for insights on rate cuts. The S&P 500 posted its second straight weekly drop, down 0.65%. The Nasdaq retreated 0.96% and the 30-stock Dow lost 0.49%.

China’s strong economic data: China started the year on a positive note as the latest economic data topped estimates. Retail sales grew better than expected at 5.5%, while industrial output rose 7%, above the 5% forecast. However, the country’s ailing property sector continues to remain weak. Real estate investment was down 9% in the first two months of 2024, from a year ago.

India aims to be chip leader: India is aiming to become a global chip leader in five years. The country’s minister of electronics and information technology, railways and communications stated that India is well-positioned to be a “trusted value chain partner” in the sector.

White House on TikTok: The White House has called on a more divided Senate to ‘move swiftly’ on the TikTok bill that requires Chinese tech company ByteDance to sell the video app or face a ban in the U.S. Last week, the House of Representatives passed the legislation with strong bipartisan support and President Joe Biden has indicated he would sign it if approved by Congress.

U.S. election risk on China stocks: Goldman Sachs has revised its barometer for the level of risk from U.S.-China tensions in Chinese stocks. It now stands at 53 out of 100, signaling a “somewhat benign” outlook for relations between the two countries.

Focus on the Fed: It will be a pivotal week for Wall Street as market attention turns to the Federal Reserve. Signals from Fed Chair Jerome Powell and other officials on future rate cuts will be in sharp focus as policymakers give updates on rates, economic growth, inflation, and unemployment at their two-day meeting which wraps up on Wednesday.

Inflation concerns persist: Last week’s one-two punch of bad news on consumer and producer prices sparked investor anxiety that inflation may have plateaued as price pressures remain sticky.

Market expectations: Some economists argue that the Fed may pare back its projection of three rate cuts for this year to only two. JP Morgan Chase CEO Jamie Dimon recently suggested a more cautious approach to rate cuts, emphasizing the importance of the Fed’s credibility.

Note: Please remember that this is a rewritten version of the original article, and some information may have been omitted as instructed.