Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Asian Stocks Down Following U.S.’ Rollercoaster Session, “Volatility is Back”

Stock MarketsJan 24, 2022 21:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Asia Pacific stocks were down on Tuesday morning, alongside U.S. equity futures. U.S. shares closed a hair-raising volatile session as concerns over U.S. Federal Reserve monetary policy tightening and geopolitical tension continue to grow.

Japan’s Nikkei 225 fell 2.01% by 9:24 PM ET (2:24 AM GMT) and South Korea’s KOSPI fell 2.33%

In Australia, the ASX 200 slid 2.46%. The country released its consumer price index and the National Australia Bank Business Confidence Index earlier in the day.

Hong Kong’s Hang Seng Index fell 1.67%.

China’s Shanghai Composite was down 0.93% and the Shenzhen Component was down 0.69%. Developer China Evergrande Group (HK:3333) urged offshore bondholders to refrain from aggressive legal action over repayments, in response to an ad-hoc group of the company’s overseas creditors threatening to take enforcement measures.

In the U.S., the S&P 500 and Nasdaq 100 contracts retreated but dip buyers left U.S. shares in the green on high volumes. This was a sharp U-turn from a selloff in Monday’s session amid a 4% drop in U.S. equities.

Investors will closely monitor the Fed’s policy decision, which will be handed down on Wednesday. Global shares are down more than 6% in January to date over expectations that the central bank will hike interest rates sooner than expected, alongside uneven company earnings.

The question for investors now is whether this fall is a buying opportunity or a warning of wider stress across more asset classes.

“Volatility is back,” RBC Capital Markets head of U.S. equity strategy Lori Calvasina told Bloomberg.

“We’re having a sea-change in terms of Fed policy. Equity investors frankly have been behind the curve in anticipating what’s coming, so there’s a lot of catch-up to do.”

The Cboe Volatility Index climbed to its highest level in over a year before receding.

The stock recovery could come sooner than expected and “it’s time to make shopping lists and look for ‘babies that got thrown out with the bathwater,’” Oppenheimer strategists led by John Stoltzfus said in a note on Monday.

However, other investors, including Wharton School of the University of Pennsylvania professor and author of “Stocks for the Long Run” Jeremy Siegel, warned that a challenging quarter lies ahead.

“I’m still very positive on long-term equities but I think it’s in for a rocky time the next two or three months. We have to get used to the fact that the Fed is going to be much more hawkish,” he said.

Geopolitical tensions over Ukraine also continue to mount. The U.S. is putting as many as 8,500 troops on heightened alert for deployment to bolster NATO forces in Eastern Europe if needed.

Meanwhile, the International Monetary Fund will launch the World Economic Outlook update, while the U.S. releases its Conference Board (CB) Consumer Confidence index, later in the day.

Asian Stocks Down Following U.S.’ Rollercoaster Session, “Volatility is Back”

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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?
Replace the attached chart with a new chart ?
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'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
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email