TE24 Business Desk:
Asian markets moved on Wednesday as investors tried to navigate an uncertain economic environment, with central banks raising interest rates to tackle runaway inflation and raising fears of a possible recession.
However, while Federal Reserve officials and their colleagues are expected to tighten monetary policy later in the year, there is growing talk that interest rates could be cut or cut in 2023.
Price growth has slowed. While the Fed’s July meeting minutes will be released the next day, investors hope to get a glimpse of policymakers’ thoughts and ideas for plans for next month’s meeting, said Carol Kong of Commonwealth Bank of Australia. I wouldn’t be surprised if the protocol (officials) consider a 100 basis point hike in July.
The bank hiked interest rates by 75 percentage points in June and July. Better-than-expected earnings from retail giants Walmart and Home Depot fueled optimism that U.S. consumers will remain resilient despite higher inflation and rising borrowing costs.
Asia, however, has struggled to keep pace with Wall Street’s glowing leadership as concerns over the Chinese economy dampen appetite. The country’s central bank announced an unexpected rate cut on Monday.
According to a report on Tuesday. , Premier Li Keqiang urged six major provinces, which account for about 40% of the economy, to strengthen their growth-enhancing policies. But according to analysts, the market is more concerned about the weakening impact of the lockdown and other strict control measures as part of the government’s zero-covid strategy.
Adam Montanaro, investment director for global emerging markets equities at abrdn, said: “Progress on China’s zero-coronavirus policy has been less visible, with recent reports suggesting that containing the virus is the country’s top policy priority.
Not only do investors hate uncertainty, but the negative economic impact of these policies is becoming increasingly visible. Hong Kong was flat, Shanghai fell and Seoul and Wellington also suffered losses.
Tokyo, Singapore, Taipei and Manila have increased. The stock has rallied for weeks since hitting June lows, and while the initial rally was widely seen as a bear market rally, it may already be bottoming out.
It looks like a floor, acts like a floor, trades like a floor. Recently, calls for a bear market rally have suddenly gone quiet. As inflation gradually eases, the risk of the Fed pushing the economy into recession has lessened.
A soft landing by the Fed seemed possible, allowing the rally to continue.”
– Index around 02:30 GMT –
Tokyo – Nikkei 225: 29,101.33, 0.8% (breakout)
Hong Kong – Hang Seng Index: Flat at 19,837.16
Shanghai – Composite: down 0.4% to 3,263.71
West Texas Intermediate: Up 0.3% to $86.78 bbl
Brent North Sea crude oil: up 0.2% to $92.51 bbl
: $1.2108, from $1.2092 – FTSE 100: 7,536.06,
Up 0.4% (off)
– Article contributed by Bloomberg News –
