Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
U.S. Stocks End Week Higher as Tech Rally Offsets Consumer Weakness 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
EU Delays Mercosur Free Trade Agreement Signing Amid Ukraine War Funding Talks 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
New Zealand government bonds closed Tuesday’s session on a higher note as demand for safe-haven instruments continued amid a mild recovery in equities in a muted trading week that is scheduled to witness data of least economic significance. Also, the upcoming Chinese Lunar New Year holidays have cast a gloomy sentiment worldwide, leading to rise in demand for safe-haven assets.
At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 2-1/2 basis points to 2.99 percent, the yield on 20-year also plunged 2-1/2 basis points to 3.51 percent and the yield on short-term 2-year closed 2 basis points lower at 1.88 percent.
Global risk sentiments look likely to stabilise further today, given Wall Street’s bounce overnight and Asian bourses preparing for the upcoming Chinese New Year holidays, but the rally could be short-lived if US inflation prints surprise on the upside tomorrow. US president Trump unveiled his 2019 Budget wish list which outlines a USD1.5 trillion infrastructure package, which brilliantly has the federal government only coughing up USD200 with the rest being funded by the state and local governments.
As part of suggesting fiscal discipline, the plan also includes deep non-military spending cuts that should pare the federal budget deficit by more than US$3 trillion over the next decade, but basically, the budget plan needs to pass Congress and not endanger inflationary concerns either through fuelling wage inflation or warranting higher Treasury issuance.
Meanwhile, the NZX 50 index closed 0.78 percent higher at 8,122.22, while at 05:45GMT, the FxWirePro's Hourly NZD Strength Index remained neutral at 51.59 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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