Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Asian Stocks Down, Bets on Fed Interest Rate Hikes Continue Upward Trend

Stock Markets Feb 06, 2022 22:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
AXJO
+0.43%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JP225
-0.21%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
+2.16%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CBA
-0.21%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AZN
+0.69%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GSK
-0.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Monday morning, while U.S. futures were down, as bets that the U.S. Federal Reserve will hike interest rates also weighed on bonds.

China’s Shanghai Composite jumped 1.68% by 9:53 PM ET (2:53 AM GMT) while the Shenzhen Component rose 1.38%. Chinese shares resumed trading after the week-long Lunar New Year holiday, and data released earlier in the day showed that the Caixin services purchasing managers index was 51.4 in January.

Hong Kong’s Hang Seng Index fell 0.88%.

Japan’s Nikkei 225 fell 1.07% and South Korea’s KOSPI fell 1.03%.

In Australia, the ASX 200 was down 0.46%, with retail sales data released earlier in the day.

Expectations are now growing that the Fed will hike rates over five times in 2022, thanks to a strong U.S. jobs report. Non-farm payrolls were at 467,000 in January, while the unemployment rate was 4%.

The Fed is in a difficult spot, “trying to manage the real economy where we see that hot inflation and the financial economy, which quivers every time we talk about rate rises,” Bain & Co. global head of macro research Karen Harris told Bloomberg.

Investors now await U.S. inflation data, including the consumer price index, due on Thursday.

In Europe, European Central Bank (ECB) Governing Council Member Klaas Knot said he expects a rate increase as early as in the fourth quarter of 2022. Knot’s comments come after the central bank’s hawkish pivot during the previous week, with President Christine Lagarde no longer excluding a rate hike during the year..

“The momentum trade has been to short bonds, and many are now fearing higher bond yields will really start to bite in equity land,” Pepperstone Financial Pty Ltd. head of research Chris Weston said in a note.

Cleveland Fed President Loretta Mester is due to speak on Wednesday.

Other central banks handing down their policy decisions during the week include the Reserve Bank of India and Bank Indonesia, whose decisions are due on Thursday. U.K. Bank of England Governor Andrew Bailey will also speak on the same day.

Tensions over Ukraine also continue, with U.S. President Joe Biden speaking to his French counterpart Emmanuel Macron about a response to Russia’s troop buildup along its border with Ukraine. Russia denies plans of an attack, however.

Meanwhile, companies including AstraZeneca PLC (LON:AZN), Commonwealth Bank Of Australia (ASX:CBA), GlaxoSmithKline PLC (LON:GSK), Pfizer Inc. (NYSE:PFE), Softbank (OTC:SFTBY) Group Corp. (T:9984), Toyota Motor (NYSE:TM) Corp. (T:7203), Twitter Inc . (NYSE:TWTR), and Uber Technologies Inc . (NYSE:UBER) will release their earnings during the week.

Asian Stocks Down, Bets on Fed Interest Rate Hikes Continue Upward Trend
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email