Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Author
Derick Lim
Mar 23, 2023 1:30AM ET
As expected the manipulative news started
3
1
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Asian stocks mixed as markets digest Fed comments, rate outlook
Published Mar 23, 2023 12:09AM ET
Updated Mar 23, 2023 12:20AM ET
© Reuters.
By Ambar Warrick
Investing.com -- Most Asian stock markets moved in a flat-to-low range on Thursday as markets weighed the prospect of a less hawkish Federal Reserve against increased economic headwinds in the coming months.
Hong Kong’s Hang Seng index was the sole outperformer for the day, rising 0.7% on strength in heavyweight technology stocks after Tencent Holdings Ltd (HK:0700) logged better-than-expected annual results. The reading helped spur some optimism over a Chinese economic recovery this year.
Hong Kong's Monetary Authority also hiked interest rates by 25 basis points, keeping pace with the Fed.
But Chinese indexes were mixed, with the Shanghai Shenzhen CSI 300 up 0.3%, while the Shanghai Composite lost 0.1%, as major property stocks sank after beleaguered developer China Evergrande Group (HK:3333) outlined a debt restructuring plan, which could set a precedent for the rest of the sector.
Other Asian markets crept lower. India’s Nifty 50 and BSE Sensex 30 indexes fell 0.4% and 0.3%, respectively, while Australia’s ASX 200 shed 0.6%.
Japan’s Nikkei 225 index fell 0.3% ahead of a key consumer inflation reading on Friday, which is largely expected to factor into the Bank of Japan’s stance on monetary policy in the coming months.
Sentiment in Asia was dented by a weak lead-in from Wall Street, as U.S. stock indexes tumbled after the Federal Reserve decision on Wednesday.
The Fed hiked rates as expected and hinted at a potential pause in its rate hike cycle in the wake of a banking crash. But the central bank reiterated its commitment to bringing down inflation, forecasting at least one more hike this year, and said it has no intention of cutting interest rates this year.
While U.S. interest rates are now trending close to their peak in this tightening cycle, analysts warned that further increases, along with rates remaining higher for longer, are likely to apply increased pressure on the economy this year.
The Fed also trimmed its annual GDP outlook.
The prospect of high U.S. interest rates bodes poorly for Asian markets, given that foreign capital flows to the region are expected to remain constrained amid tighter monetary conditions. Fears of an economic slowdown are also expected to keep investors risk-averse, limiting appetite for Asian markets.
Risk-heavy Southeast Asian markets declined on Thursday, with the Philippine Composite and Malaysian benchmark losing 0.6% and 0.4%, respectively.
Related Articles
Comments (1)
Prashant Kumar
Mar 23, 2023 1:30AM ET
nothing negative anymore for market
0
0
Prashant Kumar
Mar 23, 2023 1:30AM ET
its time for dow to outperform as already corrected a lot from top
0
0
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
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.