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, Reassuring Fed Comments Calm Investor Nerves

Stock MarketsJun 22, 2021 10:22PM 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 Wednesday morning, with reassuring comments from U.S. Federal Reserve officials on inflation and monetary policy starting to calm investors’ frayed nerves.

Japan’s Nikkei 225 edged up 0.16% by 10:11 PM ET (2:11 AM GMT), with the Bank of Japan released the minutes from its own monetary policy meeting earlier in the day. The country also released both its manufacturing and services purchasing managers’ index for June earlier in the day, with the former standing at a lower-than-expected 51.5.

South Korea’s KOSPI was up 0.28% while in Australia, the ASX 200 was down 0.41%.

Hong Kong’s Hang Seng Index gained 0.78%.

China’s Shanghai Composite inched down 0.02% while the Shenzhen Component was up 0.38%.

The benchmark S&P 500 climbed for a second day as Fed Chairman Jerome Powell insisted that the recent larger-than-expected inflation pressures are transitory.

The dollar and U.S. Treasury yields held declines, while bitcoin rebounded from its fall below the $30,000 mark.

Markets are finally starting to stabilize after the Fed’s sudden hawkish tone in its latest policy decision surprised investors. With the decision hinting at earlier-than-expected asset tapering and interest rate hikes, officials have since sought to reassure continuing Fed support for the economy via asset purchases and low interest rates.

The Fed’s shift during the previous week to acknowledge higher inflation and pull forward its rate hike projections is “a reflection of more positive longer-term dynamics,” BlackRock (NYSE:BLK) Investment Institute analysts led by Jean Boivin said in a report.

“We believe the Fed’s new outlook will not translate into significantly higher policy rates any time soon. This, combined with the powerful restart, underpins our pro-risk stance,” the report added.

In his testimony to the House of Representatives Select Subcommittee on Tuesday, Powell said that recent price increases were bigger than expected but insisted that they will likely wane. He also acknowledged the uncertainty on this view and said the central bank would be patient in increasing borrowing costs.

Ahead of Powell’s testimony, New York Fed President John Williams said that a discussion about raising interest rates is still “way off in the future.” Meanwhile, Cleveland Fed President Loretta Mester said additional employment gains for the next several months are her pre-requisite to assessing whether the U.S. economy has achieved the progress required to begin asset tapering. More Fed officials will also deliver comments throughout the week.

The Fed will also release the results of its bank stress tests on Thursday, with the Bank of England handing down its policy decision earlier in the day.

On the data front, U.S. new home sales for May and the current account balance for the first quarter will be released later in the day.

Asian Stocks Up, Reassuring Fed Comments Calm Investor Nerves
 

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 (3)
Jouni Matero
Jouni Jun 23, 2021 4:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean FED calm down risk gsmblers' minds. Nobody else buys Tech stocks long at this point. One more ridiculous title.
Joel Schwartz
Joel Schwartz Jun 22, 2021 11:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The FED is the market now. They’ve destroyed every other valuation metric, and we let them do it in broad daylight. Sad.
Jouni Matero
Jouni Jun 22, 2021 11:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Best comment of the month, SO true!!
Ronald Warren
Ronald Warren Jun 22, 2021 10:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Reassuring lies from Mr. Powell !! Get ready for earnings next month!! If you haven't noticed, the economy has been running out of steam since Memorial Day. Also, I noticed that Lowe's and Home Depot are empty these days. The consumer has turned his back on the ridiculous price gouging!! Powell said 5% inflation was unacceptable. We're way past that. What's he going to do? Bypass Congress and pass out funny money in the streets?
 
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