Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asian Stocks Up Despite Impending Fed Tapering and Unending China Evergrande Woes

Stock MarketsSep 22, 2021 09:53PM 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 up on Thursday morning, with investors digesting the prospect that the U.S. Federal Reserve could begin asset tapering as soon as November 2021.

China’s Shanghai Composite rose 1.05% while the Shenzhen Component was steady at 14,277.08 by 9:44 PM ET (1:44 AM GMT). China Evergrande Group's (HK:3333) debt crisis continues to be on investors’ radars, even as some concerns were eased after it issued a vaguely worded statement on a local bond interest payment. However, questions remain about the developer’s $300 billion of liabilities and the payment due on a dollar note.

Hong Kong’s Hang Seng Index jumped 2.10%.

South Korea’s KOSPI was down 0.56% and in Australia, the ASX 200 rose 1.07%.

Japanese markets were closed for a holiday, but the Bank of Japan kept its interest rate steady at -0.10% on Wednesday.

Shorter-maturity U.S. Treasury notes fell while longer-maturity debt trended upwards. Cash Treasuries trading will not take place on Thursday due to the holiday in Japan.

The Fed could begin scaling back asset purchases in November 2021 and complete the process by mid-2022, Chairman Jerome Powell said as the central bank handed down its latest policy decision on Wednesday. The Fed is likely to also begin hiking interest rates after completing the tapering process, he added.

Fears about China Evergrande, alongside the Fed’s shift away from its dovish stance, have led to market volatility about a slowing economic recovery from COVID-19. However, some investors remained optimistic.

“The Fed has got to be pleased that their communication on the longer way to asset tapering has avoided the dreaded fear of the tantrum,” BlackRock Inc (NYSE:BLK). senior portfolio manager for systematic fixed income Jeffrey Rosenberg told Bloomberg.

“The flatter curve is kind of an initial response. Yes, the curve is flatter, but you’ve got to squint to see that market reaction. This is a very good outcome for the Fed in terms of signaling their intent to give the market information well ahead of the asset tapering decision.”

Powell, Fed Governor Michelle Bowman and Fed Vice Chairman Richard Clarida will discuss the economic recovery from COVID-19 on Friday.

Meanwhile, the Bank of England hands down its policy decision later in the day.

Asian Stocks Up Despite Impending Fed Tapering and Unending China Evergrande Woes
 

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 (2)
Fong SH
Fong SH Sep 22, 2021 10:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Suddenly all are saying, well, seems like Evergrande crisis might not be that serious as of Lehman, but there was lots of negatives last two weeks. People who do not work or live in China will never understand how their management rules are. Even those who are living there, working in their industry, nobody will ever understand how their governing systems works, only a few of their top elites will know what is going on when there's a so called crisis. For the last two weeks there were so many expertise of explanation of how the  Evergrande debts being blown up and so forth, what happened now? I've been positive since last year June till now in Hang Seng & Shanghai too. Cheers, stay safe and healthy when outdoors.
ZS Beck
ZS Beck Sep 22, 2021 10:13PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nobody tapering here, move on already
 
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