Asia stocks wobble, dollar firm as markets wary before key U.S inflation data

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3%, after U.S. stocks ended the previous session with mild losses.

Australian shares were down 0.65%, while Japan’s Nikkei stock index slid 1.5%.

Higher U.S. bond yields were supporting the dollar, with the U.S. currency’s index measure against six peers moving back over 100 to test last week’s near-two year high.

The Japanese currency bore the brunt of the losses against the greenback, which rose to 125.77 yen overnight, its highest since June 2015.

The yen has been under the gun over recent months as the Bank of Japan has committed to ultra easy policy even as many other major central banks, led by the Fed, have embarked on tightening monetary conditions.

The euro was buffeted by politics, unable to hold onto gains from its mini-relief rally on Monday after French leader Emmanuel Macron beat far-right challenger Marine Le Pen in the first round of presidential voting.

It was last steady at $1.087.

“U.S stocks fell on Monday as investors grew increasingly concerned a three-year high in the benchmark US 10-year Treasury yield would start to slow the economy, and looked ahead to the upcoming earnings season for signs of what impact inflation is having on corporate profits,” Ord Minnett research analysts wrote to clients on Tuesday.

China’s markets gained ground as signs emerged that some of the strict restrictions were starting to ease across the country’s financial capital.

World markets have been hit hard in the past few months on worries the Ukraine war, Fed’s tightening and China’s tough new COVID-19 restrictions could set back global growth.

Hong Kong’s Hang Seng Index gained 0.6% in early trade on Tuesday, while China’s bluechip CSI300 Index was up 0.4%.

Tech stocks weighed on Wall Street during Monday’s session as the Dow Jones Industrial Average (.DJI) fell 1.19%, the S&P 500 (.SPX) lost 1.69% and the Nasdaq Composite (.IXIC) dropped 2.18%. All 11 S&P 500 sectors fell.

Economists polled by Reuters forecast the U.S. consumer price index (CPI) on Tuesday would post an 8.4% year-over-year increase in March.

NatWest Markets economists have forecast a 1.1% month-on-month jump in the headline inflation figure which would be the largest monthly gain since June 2008.

“We’re quite hawkish in terms of U.S rate hikes and we think it’s not just the amount of tightening but the pace which is going to impact investors,” Elizabeth Tian, Citigroup’s equity derivatives director in Sydney told Reuters.

“Equities markets have been very resilient and quite relaxed compared to the fixed income markets but we’re expecting at the Fed’s May meeting there will be some kind of announcement in term of quantitative easing tapering and that is when we could see the volatility emerging in equities.

“The question is going to be how do markets react to the velocity of rate hikes we could see.”

Early in the Asian session, the yield on benchmark 10-year Treasury notes rose to 2.8107% compared with its U.S. close of 2.782% on Monday.

The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 2.5242% compared with a U.S. close of 2.508%.

U.S. crude ticked up 0.85% to $95.09 a barrel. Brent crude rose to $99.18 per barrel.

Gold was slightly lower. Spot gold was traded at $1951.45 per ounce. [GOL/]

(Reporting by Scott Murdoch in Hong Kong; Editing by Shri Navaratnam)

Source link

0 0 votes
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.