Asian Stock Markets Mixed Amid Fed Rate Hike

The stock markets in Asia are currently showing neutral and mixed projections. On the other hand, Wall Street was able to make some recovery.

In addition, Federal Reserve chairperson Jerome Powell claimed in a recent statement that the central bank could increase the interest rates further to curb inflation. The latest news from Beijing suggests that after the recovery of Wall Street, Asian market performance went mixed.

In the international markets, the price of a single barrel of oil has reached $110. Keeping in view the current situation, the stock market drivers of Shanghai and Hong Kong have declined the proposal.

S&P 500 index standard was appreciated showing a consolidation for Wall Street. The rise was noted as a massive jump in the positive direction, with 2% retail sales diluting the CPI and inflation concerns in the consumer markets.

Upcoming Recession and Inflation

After the statement issued by the Fed chairperson, the sentiment among the stock traders swayed toward rate hikes expectations.

On the other hand, Yeap Jun Rong working for IG, mentioned in a report that financial markets across the board seem to be getting back in shape and need some time to shake off the excessive pressure in the form of a mass sell-off session.

On the other hand, the Shanghai Composite Index retracted by 0.5%, and the Hang Seng of Hong Kong decreased by 0.7%. On the other hand, the Nikkei Tokyo market gained 0.7%, while the government of Japan projected an economic output reduction of 0.2% during the first quarter of 2022.

Japanese stock index retraction was higher than estimated. South Korean Kospi gained 0.2%, and S&P-ASX for Sydney added 1%.

Meanwhile, the Stock Markets of New Zealand and Southeast Asia are moving in the green lane. S&P 500, Down Jones Industrial Average, and NASDAQ all printed gains.

Among the biggest tech stock winners, Microsoft and Apple remained the biggest economic contributors. On the other hand, the stock performance of the smaller companies also showed signs of recovery, postulating that the market sentiment is improving.

Bond yields of the Treasury also generated significant returns. During the trying times, the consumers have continued to participate in economic activities. The latest report by Commerce Department shows that the retail sales increased by 0.9% in April despite slow activity frequency during the first quarter.

Supply Chain has remained an issue that has imposed the distributors to raise rates. Crude Oil inflated by $1.13 per barrel for New York Mercantile, among others. In London, oil prices hiked by 60 cents per barrel. USD/Yen pair reached 129.12 from 129.42 within the last 24 hours, and the euro/USD raise from $1.0531 to $1.0543.

Leave a Reply

Your email address will not be published.