TOKYO / NEW YORK (Reuters) – Asian stocks fell Wednesday, monitoring Wall Street, as investors waited to see if the U.S. Federal Reserve marked a faster path toward policy normalization than before. previously expected.
The Federal Open Bank Committee of the U.S. Central Bank (FOMC) will conclude a meeting two days later in the day.
The index of regional equities excluding Japan fell below 0.3%, led by declines in South Korea’s Kospi and Australia’s S&P / ASX 200.
Shanghai Composite index slipped 0.4%, while Hong Kong’s Hang Seng fell 0.2%.
Japan’s Nikkei 225 added to the trend to add 0.1%, but the Topix index was generally flat to slightly lower.
Global markets were turned upside down a few weeks ago by a climate in Finance that saw the criterion yield rise to a year-over-year level as bond investors promise to accelerate vaccinations COVID-19 and major fiscal stimulus stimulated faster-than-expected growth and inflation in the world’s largest economy.
The Fed’s volatile stock forecast may be driven by a technical shift in the levers controlling their policy rate, but few expect the central bank to act on the issue. at this week’s meeting, even though it releases rosier growth projections.
“We (Chairman Jerome) Powell intend to note that the FOMC has the tools to intervene if the links market becomes chaotic or hinders the recovery of the affiliates. economy, ”Commonwealth Bank analysts wrote in Australia.
“But we expect Powell to back down from talking about tightening policy because of the size of the labor market. ”
“US and USD bond yields could jump if the FOMC post-meeting statement and Powell’s statement are not considered correct. ”
Benchmark’s 10-year financial results continued to consolidate around 1.6%, standing at 1.6197% Wednesday in Asia. They reached 1.6420% on Friday for the first time since February last year.
The dollar tracked an index against six major peers held at around 91.90 after returning from a three-month high of 92.506, touching last week.
Money market warning could extend all week, with the Bank of England announcing its policy decision on Thursday, and the Bank of Japan circulating a policy review on Friday in which it may eliminate a numerical target for buying property.
On Tuesday, the Dow Jones industrial average fell 0.39% to 32,825.95 points, while the S&P 500 lost 0.16% to 3,962.71. The Nasdaq Composite rose 0.09% to 13,471.57.
E-mini futures for the S&P 500 fell 0.04% on Wednesday.
Gold prices moved up to a record high in more than two weeks in anticipation of higher inflation.
Spot gold went up about 0.2% at $ 1,734.81 per ounce.
Lower oil prices were amid concerns over demand after Germany, France and other European countries banned the AstraZeneca vaccine, a move that would undermine the strength of the region’s economic recovery.
Brent crude futures slipped 12 cents to $ 68.27 a barrel and U.S. crude futures slipped 3 cents to $ 64.77 a barrel.
Reciting with Kevin Buckland; Edited by Kim Coghill