Asia-Pacific stocks rise as Fed works to combat high inflation

Asian-Pacific stocks rose higher while the yen fell on Tuesday after the US federal prime minister suggested he act more aggressively to tackle inflation.

Hong Kong’s Hong Kong rose 2.4%, Japan’s Topix rose 1.4% and Australia’s S & P / ASX closed up 0.9%, while in South Korea the Kospi rose 1%.

In Japan, the stock was supported by a softening of the yen, which fell 0.8% against the dollar to 120.30 to reach its weakest level in more than six years.

In China, the CSI 300 index of the largest stocks traded in Shanghai and Shenzhen lost 0.5%.

The market intensified last week after Deputy Prime Minister Liu he made a Rare intervention Emphasize government support for the economy and capital markets.

“I would expect more transparency and less surprise around the upcoming regulation, but also less actual regulation going forward – and in general, a policy that supports growth and helps the Chinese economy achieve the 5.5% growth rate target,” Christina Hopper said. Chief Global Market Strategist at US Fund Manager Invesco.

European futures indicated a mixed start, with fixed FTSE 100 contracts and Euro Stoxx 50 futures down 0.4%.

The moves came after the 10-year yield on the treasury reached 2.3%. The U.S. government bond market is experiencing this The worst month Since 2016 after high inflation forced the Fed to raise interest rates last week.

Fed Chairman Jay Powell on Monday stressed the need for tighter monetary policy, after inflation soared to a 40-year high of 7.9% last month.

He said the Fed should move “quickly“Towards a tighter monetary policy to deal with a ‘particularly tight’ labor market and ‘far too high’ inflation.

US stocks also fell following Powell’s comments, but made up for most of their losses, with the S&P 500 closing less than 0.1% on Monday.

“The yield spread on U.S. bonds for two years and 10 years has been compressed very significantly in recent months as the Fed has become more budding. If that yield spread is negative, it may indicate a recession in the cards,” Hopper added.

On Tuesday afternoon in Asia, the 10-year yield traded at 2.33%. Futures on the S&P 500 were down 0.3%.

In commodity markets, the Brent International Oil Index rose 3.1 percent to $ 119.22 a barrel. The invasion of Ukraine by Russia, the world’s second-largest oil supplier, has led to a sharp rise in world prices.

Gold changed slightly at $ 1,936.89 an ounce.

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Asia-Pacific stocks rise as Fed works to combat high inflation Source link Asia-Pacific stocks rise as Fed works to combat high inflation

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