Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Asian Stocks Up, Investors Brace for Latest Fed Policy Decision

Published May 03, 2022 10:36PM ET Updated May 03, 2022 10:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
NDX
+1.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AXJO
+0.61%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HK50
+0.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KS11
-0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Wednesday morning, and bonds are under pressure, ahead of the U.S. Federal Reserve’s latest policy decision. Investors are bracing for the biggest interest rate hike since 2000 while awaiting further clues on how aggressively the central bank will tackle inflation.

South Korea’s KOSPI inched down 0.03% by 10:33 PM ET (2:33 AM GMT).

In Australia, the ASX 200 inched down 0.07%, with retail sales figures for March 2022 released earlier in the day.

Hong Kong’s Hang Seng Index Index fell 0.99%.

Chinese and Japanese markets remain closed for a holiday.

In the U.S., S&P 500 and Nasdaq 100 contracts climbed higher. They were boosted by a second consecutive daily rally in U.S. shares, despite volatile trading, on Tuesday.

Bonds fell as most central banks are moving towards tightening their monetary policies, and yields climbed in Australia and New Zealand. There is no cash trading due to the holiday in Japan.

In its policy decision, which will be handed down later in the day, the Fed is widely expected to hike interest rates by 50 basis points and detail plans for the reduction of its balance sheet.

A critical component of the decision will be Fed Chairman Jerome Powell’s comments. Should he deliver comments that are more hawkish than expected, it could raise concerns about an economic slowdown in the U.S. as borrowing costs rise.

“There is a difficult set up in general for risk assets” as valuations remain stretched despite a drop in equities, Goldman Sachs & Co. LLC chief investment officer for public markets equity Kathryn Koch told Bloomberg. “Some people think stagflation is a real risk,” she added.

Swap traders have already fully priced in half-point Fed moves for June, July, and September 2022, the most aggressive trajectory in three decades. However, any hints of a 75-basis-point increase could negatively impact markets.

On the data front, the Institute of Supply Management (ISM) manufacturing purchasing managers index was 55.4, while the ISM manufacturing employment index was 50.9, in April 2022.

“The Fed remains very focused on bringing inflation down, however, any further hawkish pivots will likely be tempered to some extent by the desire to achieve a soft landing,” T. Rowe Price Group Inc. U.S. economist Blerina Uruci said in a note.

The Bank of England will hand down its policy decision on Thursday, and the U.S. jobs report for April 2022, including non-farm payrolls, will follow a day later.

Elsewhere, the dollar index remained near two-year highs. This reflected investor caution over risks including tighter monetary policy, ongoing COVID-19 lockdowns in China, and the war in Ukraine perpetrated by the Russian invasion on Feb. 24.

Oil traded near the $103 mark, with the Organization of the Petroleum Exporting Countries and allies (OPEC+) convening virtually for its monthly meeting on Thursday. Gold was little changed.

Asian Stocks Up, Investors Brace for Latest Fed Policy Decision
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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)
Red Riley
Red Riley May 03, 2022 11:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think most investors have braced for 2.75 bps for the year. it is what has been said all along
 
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
Continue with Google
or
Sign up with Email