Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asian Stocks Down as Investors Await U.S. Inflation Data, Fed Reaction

Stock MarketsMay 11, 2021 10:48PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly down Wednesday morning, staying near one-month lows as investors remain concerned about the implications of faster inflation and the continuous surge in commodities on the global economic recovery from COVID-19.

Japan’s Nikkei 225 fell 0.72% by 10:36 PM ET (2:36 AM GMT) and South Korea’s KOSPI slid 1.02%

In Australia, the ASX 200 was down 0.71%. The country’s 10-year bond jumped after the government handed down a big-spending budget to further boost the country’s economic recovery from COVID-19.

Hong Kong’s Hang Seng Index was up 0.28%.

China’s Shanghai Composite was up 0.23% while the Shenzhen Component edged down 0.15%.

The most recent drop in global stocks has some investors confused as to the reason behind it.

"There isn't a clear catalyst behind this purge... it seems to be a combination of inflation fears making a comeback and some market participants moving higher along the value spectrum, cutting their exposure to anything with a stretched valuation," XM investment analyst Marios Hadjikyriacos told Reuters.

Meanwhile, U.S. Treasury yields advanced and the dollar, while inching up on Wednesday, traded near the lowest levels of 2021.

Investors now await U.S. inflation data for April, including the Core Consumer Price Index (CPI), due to be released later in the day alongside U.S. government debt sales. They are also bracing for the possibility that both events combined could trigger another bond selloff.

The data is forecast to show that inflation accelerated in April, with the lockdowns in 2020 as COVID-19 spread globally expected to amplify the year-on-year figure.

The debate on whether the data will force the U.S. Federal Reserve to tighten its current dovish policy sooner than expected also continues. A slew of Fed officials has reiterated that the U.S. economic recovery, while on the right track, is not far enough and it is still too early to pull back the monetary support currently in place.

“It’s all about inflation expectations,” TD Securities global head of rates strategy Priya Misra told Bloomberg, adding that if the CPI indicates that “inflation is likely to be higher for a while, I think the taper discussion will come back into the forefront and then we can get a bigger interest rate move.”

In the U.K., Bank of England Governor Andrew Bailey is due to speak later in the day.

Meanwhile, commodity prices continue to surge, with copper trading near record levels. However, China’s Dalian Commodity Exchange raised trading limits and margin requirements on Tuesday, while also pledging to strengthen market supervision, as attempts to temper prices continue.

Asian Stocks Down as Investors Await U.S. Inflation Data, Fed Reaction
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
Comments (1)
Darthvader Priya
Darthvader Priya May 11, 2021 11:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when metal companies languished for a decade it was ok? let them make money for a few years .... otherwise this shortage will continue
Ominous Owl
Ominous Owl May 11, 2021 11:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Metal companies are doomed to languish as long as the metal prices are manipulated.
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email