Squawk Box Asia - 13-May-26

Why It Matters

The data underscores persistent inflationary pressure and geopolitical risk, shaping Fed policy and prompting investors to reassess exposure to tech equities and energy commodities while trade negotiations could redefine supply‑chain dynamics in the Indo‑Pacific.

Key Takeaways

• US equity futures predict modest pullback after record highs.
• April CPI rises 0.6% month‑over‑month, hitting 3.8% YoY.
• Oil prices stay above $100, driven by Iran‑U.S. conflict.
• Trump prioritizes trade with China, downplays Iran negotiations.
• Treasury Secretary Bessent discusses trade, strategic minerals in Japan and Korea.

Summary

Squawk Box Asia opened with a rundown of U.S. market futures, noting that the S&P 500 and Nasdaq are expected to slip modestly after a stretch of record‑high gains. The segment linked the pullback to a hotter‑than‑expected April CPI print and to rising oil prices amid the ongoing U.S.–Iran confrontation.

The April consumer‑price index rose 0.6% month‑over‑month, taking annual inflation to 3.8%, the highest reading since May 2023. Core CPI, stripped of food and energy, climbed 0.4% month‑over‑month and 2.8% year‑over‑year. Oil traded above $100 a barrel for WTI and $107 for Brent, pressuring inflation expectations. Treasury yields showed a slight flattening, with the 10‑year at 4.46% and the 30‑year near 5.03%.

President Trump, en route to Beijing, emphasized that trade, technology and Taiwan will dominate his talks with Xi, dismissing any need for Chinese assistance on Iran. Treasury Secretary Scott Bessent, after meetings in Japan, pledged cooperation on strategic minerals and currency stability. CNBC’s Rick Santelli warned that the hotter CPI could complicate the Federal Reserve’s rate‑path, especially as a new Fed chair nominee awaits confirmation.

For investors, the combination of elevated energy costs, a still‑sticky core inflation component and a potential Fed rate hike creates a cautious backdrop for equities, particularly semiconductor stocks that have already retreated. Meanwhile, the Trump‑Xi summit and Bessent’s Indo‑Pacific outreach signal that trade policy and supply‑chain security will remain top agenda items, influencing currency markets and commodity flows in the months ahead.

Original Description

CNBC’s flagship show Squawk Box Asia (07:00 – 10:00 SIN/HK) delivers must-watch insights during the pre-game and opening of Asia’s business trading day. Co-anchored by Martin Soong in Singapore and Chery Kang in Hong Kong, the duo foucuses on the key factors driving Asian businesses and markets. Please note this livestream is only available in Europe and India.