Monday, July 22, 2024
HomeUncategorizedAsian Stocks Hit By Tech Rout, More Fed Cues Awaited

Asian Stocks Hit By Tech Rout, More Fed Cues Awaited


Related stories

Modi’s New Cabinet: India’s Ministerial Leadership in 2024

On June 7th, 2024, Prime Minister Narendra Modi was...

India vs Pakistan: A Nail-Biter Ends in Blue

The Nassau County International Cricket Stadium in East Meadow,...

Ramji Rao: A Legacy of Media and Entrepreneurship in India

Ramji Rao (1936-2024) was a prominent Indian businessman, media...

USA VS Pakistan :USA Shocks Pakistan

The 2024 ICC T20 World Cup kicked off with...

Silicon Valley Stunned by the Fulminant Slashed Investments

I actually first read this as alkalizing meaning effecting...

Most Asian stock markets sank on Wednesday tracking overnight losses on Wall Street, with technology-heavy indexes losing the most as caution kicked in ahead of the minutes of the Federal Reserve’s February meeting. Japan’s Nikkei 225, the Taiwan Weighted index, and South Korea’s KOSPI were the worst performers for the day, losing between 0.8% and 1.4%. Tech-heavy indexes bore the worst of the selling as U.S. Treasury yields surged overnight in anticipation of the Fed minutes, due later on Wednesday. Wall Street indexes also retreated overnight, with the Nasdaq Composite leading losses among its peers. The Fed minutes are widely expected to reiterate the central bank’s hawkish rhetoric, which is now expected to carry more weight in the light of stronger-than-expected inflation readings for January. Rising interest rates bode poorly for Asian stocks by limiting liquidity conditions, as higher yields drive capital away from risk-heavy assets. Regional markets are also expected to suffer from increased risk aversion, especially as traders grow wary of a potential U.S. recession. Risk-heavy Southeast Asian stocks logged sharp declines on Wednesday, with bourses in the Philippines and Indonesia losing more than 1% each. Stronger-than-expected U.S. PMI data released overnight showed that the world’s largest economy was yet to see cooling activity. The strong reading also gives the Fed more economic headroom to raise interest rates.

Asian stocks

The U.S. Personal Consumption Expenditures index.

– the Fed’s preferred inflation gauge – is also due this week, and is expected to reiterate that inflation remained sticky in January. Concerns over the Fed largely offset some optimism over a Chinese economic recovery this year, which is expected to benefit Asian markets. But initial readings from the country indicate a staggered recovery, even as the country relaxed most anti-COVID measures earlier this year. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.6% and 0.3%, respectively. Hong Kong’s Hang Seng index was the sole gainer among Asian markets on Wednesday, rising marginally on strength in HSBC Holdings PLC (HK:0005). Shares of the bank rallied over 4% after it logged strong fourth-quarter earnings. Sentiment towards Hong Kong was also somewhat helped by data showing the city’s economy shrank slightly less than initially estimated in the fourth quarter. Australia’s ASX 200 index fell 0.5%, as strong wage growth data showed some resilience in the jobs market, giving the Reserve Bank more headroom to keep raising rates.


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories


Please enter your comment!
Please enter your name here