Asian Shares Slump On US Rate Worries

RTTNews | 824 hari yang lalu
Asian Shares Slump On US Rate Worries

(RTTNews) - Asian stocks tumbled on Wednesday as hawkish comments from Fed Chair Jerome Powell on the first day of his semi-annual two-day testimony before Congress stoked concerns about interest rates being hiked by 50 basis points at the March FOMC meeting.

Resilient U.S. economic data since start of this year had raised the possibility of the U.S. central bank returning to large rate hikes, which Powell acknowledged.

According to CME's FedWatch tool, markets now price in an almost 70 percent chance of a 50-basis point rate hike at the Fed's March 21-22 policy meeting.

Most Asian currencies sank amid the broad dollar strength as focus shifted to the release of U.S. nonfarm payrolls report later in the week and next week's inflation figures.

Gold prices extended their fall while oil steadied after suffering heaving losses in the overnight session.

China's Shanghai Composite index fluctuated before finishing marginally lower. Hong Kong's tech-heavy Hang Seng index tumbled 2.35 percent to close at 20,051.25.

Japanese shares rose for a fourth straight session to reach a 3-1/2-month high as a weakening yen buoyed the outlook for exporters. Retailers also posted strong gains on optimism over demand from Chinse travelers after Japan eased its coronavirus border measures.

The Nikkei average rose 0.48 percent to 28,444.19 while the broader Topix index ended 0.30 percent higher at 2,051.21.

Mazda Motor jumped 3 percent as the yen hit a nearly three-month low at 137.90 to the greenback.

Fast Retailing, Front Retailing, Takashimaya and Isetan Mitsukoshi Holdings rallied 2-4 percent. Nissan Motor fell 3.5 percent after a rating cut by S&P to junk status.

Seoul stocks fell sharply to snap a five-day winning streak on U.S. rate hike fears. The Kospi average closed 1.28 percent lower at 2,431.91, dragged down by large-cap tech heavyweights.

Australian markets ended lower, with tech, mining and energy stocks pacing the decliners. The benchmark S&P/ASX 200 index dropped 56.90 points, or 0.77 percent, to 7,307.80 while the broader All Ordinaries index ended 0.78 percent lower at 7,503.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended down 0.54 percent at 11,855.54.

U.S. stocks tumbled overnight after Powell told lawmakers the U.S. central bank would be prepared to reaccelerate the pace of rate hikes if the economy grows too quickly.

The Dow lost 1.7 percent, the tech-heavy Nasdaq Composite shed 1.3 percent and the S&P 500 gave up 1.5 percent.

read more
Yen Rises After Japan GDP Data

Yen Rises After Japan GDP Data

The Japanese yen strengthened against other major currencies in the Asian session on Monday, after data showed that an upward revision to Japan's first quarter GDP supporting the interest rate hike expectations.
RTTNews | 1j 28min yang lalu
China Consumer Prices Fall For Fourth Month; Exports Rise

China Consumer Prices Fall For Fourth Month; Exports Rise

China's consumer prices declined for the fourth consecutive month and the decline in producer prices worsened in May, deepening deflation worries among policymakers as domestic demand remained weak despite taking enormous measures to boost consumption. Another report showed an increase in exports in May despite a sharp decline in shipments to the US due to trade tariff uncertainties.
RTTNews | 2j 0min yang lalu
Yen Rises Against Majors

Yen Rises Against Majors

The Japanese yen strengthened against other major currencies in the Asian session on Monday.
RTTNews | 2j 30min yang lalu
Australian Dollar Rises As Traders Focus On US-China Trade Talks

Australian Dollar Rises As Traders Focus On US-China Trade Talks

The Australian dollar strengthened against other major currencies in the Asian session on Monday, as traders will be closely watching the US-China trade discussions because they will impact the next move in the Australian Dollar (AUD).
RTTNews | 2j 58min yang lalu
European Shares Likely To Open On Soft Note

European Shares Likely To Open On Soft Note

European stocks are seen opening broadly lower on Monday as investors react to Trump-Elon Musk feud over the president's tax-and-spending plan and await the high-level U.S.-China trade talks.
RTTNews | 3j 28min yang lalu
Sensex, Nifty Open Higher On Strong US Jobs Data

Sensex, Nifty Open Higher On Strong US Jobs Data

Indian shares traded higher on Monday, with underlying sentiment supported by firm cues from global markets after the release of better-than-expected monthly jobs report from the U.S.
RTTNews | 4j 55min yang lalu