Asian stocks continue to fall on Wall Street amid fears that the federal government will turn more hawkish

Beijing (AP) — Asian stock markets continued on Wall Street on Thursday after the Federal Reserve Board of Governors showed that it might ease economic stimulus faster than previously thought.

Tokyo, Hong Kong and Seoul fell, while Shanghai rose following US monetary policymakers who predicted no rate hikes until 2024. Their benchmark rate is estimated to be raised twice by the second half of 2023... The Federal Reserve Board also showed that it expects the US economy to improve faster than expected.

Market snapshot: The Dow Jones Industrial Average grew as Federal Reserve Board Powell provided a little “hawkish” up-to-date on monetary policy.

Benchmark S & P500 Index on Wall Street

It fell 0.5 percent on Wednesday after some members of the Federal Reserve Board showed that short-term interest rates were expected to rise 0.5 percentage points by late 2023. A year-long plunge in the early days of the coronavirus pandemic.

“The Fed may have delivered more hawkish messages to the market than many expected,” IG’s Yeap Jun Long said in a report. Still, Yeap said the disagreements among board members suggest that “it depends heavily on how the economic recovery takes place.”

Nikkei 225

Hong Kong’s Hang Seng Index is 28,965.07, down 1.1% in Tokyo
+ 0.28%

It was less than 0.1% off at 28,434.62.Shanghai Composite Index
+ 0.17%

It increased by 0.2% at 3,525.67 in the morning.


Australia’s S & P-ASX 200 fell 0.5% to 3,261.05 in Seoul

It decreased by 0.4% to 7,357.90. New Zealand, Singapore and Jakarta have declined, but Bangkok has moved forward.

The· Wednesday Fed Announcement It reflects growing confidence in the US economy as more people are vaccinated against the coronavirus and business operations are revived.

Investors are concerned that the Fed and other central banks may feel pressure to withdraw stimulus to cool rising inflation. The Federal Reserve Board said it believes inflation is short-lived. This is a repeated stance on Wednesday.

Federal Reserve Board Chair Jerome Powell said the change was a bit far, but improved enough to discuss when to delay bond purchases. The Fed buys $ 120 billion a month to inject money into financial markets and keep long-term interest rates low.

On Wall Street, the S & P 500 fell to 4,223.70, but the Dow Jones Industrial Average averaged 30 stocks.

It decreased by 0.8% to 34,033.67.Nasdaq Composite Index

It decreased by 0.2% to 14,039.68.

In the bond market, yields on 10-year government bonds

It rose from 1.50% to 1.55% at the end of Tuesday. 2 year yield
This was even closer to the Fed’s policy expectations, rising from 0.16% to 0.20%.

US Crude Oil Benchmark in Energy Market

Electronic trading on the New York Mercantile Exchange fell 64 cents to $ 71.51. The deal rose 3 cents to $ 72.15 on Wednesday.Brent crude
International oil pricing has fallen from 70 cents per barrel to $ 73.69 in London. In the last session, it rose 40 cents to $ 74.39.

The dollar rose to 110.66 yen

From 110.50 yen on Wednesday.Euro
+ 0.02%

It has fallen to $ 12,000 since January 2016.

Asian stocks continue to fall on Wall Street amid fears that the federal government will turn more hawkish

Source link Asian stocks continue to fall on Wall Street amid fears that the federal government will turn more hawkish

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