Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Asian Stocks Up, Bets Grow on More Hawkish Fed Tightening

Published 07/13/2022, 10:57 PM
Updated 07/13/2022, 11:01 PM
© Reuters

By Zhang Mengying

Investing.com – Asia-Pacific stocks were mostly up on Thursday morning although red-hot U.S. inflation data hardened bets on more aggressive U.S. Federal Reserve monetary policy tightening.

Japan’s Nikkei 225 jumped 0.83% by 8:45 PM ET (1:45 AM GMT).

South Korea’s KOSPI edged down 0.18%.

In Australia, the ASX 200 gained 0.31%.

Hong Kong’s Hang Seng Index was down 0.18%.

China’s Shanghai Composite was up 0.12% while the Shenzhen Component was up 0.66%.

U.S. Consumer Price Index (CPI) rose to 9.1% in June year-on-year, a four-decade high. Investing.com predicted a reading of 8.8% while 8.6% was recorded in May. Investors speculated whether the 9.1% reading marks the peak.

Markets expected a historic one percentage-point Fed interest-rate hike later this month. Fed Bank of Atlanta President Raphael Bostic said “everything is in play” to combat price pressures.

Fed Bank of Cleveland President Loretta Mester told Bloomberg that the CPI report was uniformly bad and that the central bank will need to go well beyond the neutral level of rates.

Treasury two-year yields, sensitive to imminent Fed moves, climbed further.

“Stubbornly high inflation increases the risk that the FOMC continues to hike aggressively and triggers a recession,” Commonwealth Bank of Australia (OTC:CMWAY) senior economist Kristina Clifton said in a note. That’s increasingly the market’s base case and recession fears will continue to support the dollar, she added.

In Asia-Pacific, Singapore’s central bank unexpectedly tightened monetary policy on Thursday, sending the currency higher.

Meanwhile, a Chinese central bank official said liquidity in the interbank market is more than “reasonably ample,” a sign that further rate cuts are unlikely.

 

Latest comments

You can also discover Arikinvest.com right now and start making fortune off bitcoin and ethereum by earning upto 30% twice a week on your initial deposit
65
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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.