Asian stocks fall, Fed’s interest rate hike continues to rise on Investing.com

Author: Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Monday morning, and while the U.S. futures were down, the US Federal Reserve also weighed on its interest rate hike in bonds.

China rose 1.68% to 21:53 ET (2:53 AM GMT) and rose 1.38%. Shares in China began trading after a week-long Lunar New Year holiday, showing a 51.4-month high in January.

Hong Kong fell by 0.88%.

Japan fell by 1.07% and South Korea by 1.03%.

In Australia, it fell 0.46% on the day it was released.

Expectations that the Fed will raise rates fivefold in 2022 are growing, thanks to a strong U.S. employment report. There were 467,000 in January, up 4%.

The Fed is in a difficult time, “trying to manage the real economy, where we see this hot inflation and the financial economy trembling every time we talk about a rate hike,” said Karen Harris Bain & Co. Bloomberg heads of world macro-research. .

Investors are now waiting for U.S. inflation data, including what will be on Thursday.

In Europe, Klaas Knot, a member of the Governing Council of the European Central Bank (ECB), said he expects the rate to rise in the fourth quarter of 2022. Knot’s comments come after a pivot the central bank had last week, when President Christine Lagarde was no longer there. minus the increase in rates during the year.

“The current trade has been for short bonds, and many now fear that higher bond yields will start to bite into the stock,” said Chris Weston of Pepperstone Financial Pty Ltd. the head of research in a note.

Cleveland Faith President Loretta Mester is due to speak on Wednesday.

Other central banks will make their policy decisions during the week and the decisions will be made on Thursday. Andrew Bailey, Governor of the Bank of England in the United Kingdom, will also speak on the same day.

Tensions with Ukraine continue to rise, and US President Joe Biden spoke with French counterpart Emmanuel Macron over the accumulation of troops on Russia’s border with Ukraine. Russia denies any intention to attack, however.

Meanwhile, companies including AstraZeneca PLC (LON 🙂 Commonwealth Bank of Australia (ASX :), GlaxoSmithKline PLC (LON :), Pfizer Inc. (NYSE :), Softbank (OTC 🙂 Group Corp. (T :), Toyota Motor (NYSE 🙂 Corp. (T :), Twitter Inc. . (NYSE :), and Uber Technologies Inc. . (NYSE 🙂 will release its earnings during the week.