Asian shares rise cautiously ahead of Fed minutes and inflation data

February 20, 2023 (MLN): Asian markets opened higher on Monday, with Chinese blue chips leading the gains as Beijing kept interest rates steady, and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.7%, as Reuters reported.

However, geopolitical tensions continue to loom as North Korea fired more missiles and there were reports of Russia ramping up attacks in Ukraine ahead of the invasion's one-year anniversary.

The cautious start also follows the US holiday and ahead of the release of minutes from the latest Federal Reserve meeting and reading on core inflation, which could increase the risk of interest rates rising for longer.

Meanwhile, earnings season continues with major retailers Walmart and Home Depot set to provide updates on the health of the consumer.

The prospect of more Fed hikes has lifted Treasury yields and generally supported the dollar, while higher yields and a stronger dollar have not been good for gold, which was holding at $1,843 an ounce.

Oil prices were trying to rally after shedding around 4% last week.

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