Asian stocks were broadly higher on Tuesday after a mixed session on Wall Street dominated by speculation that the US Federal Reserve (Fed) will again put the brakes on financial markets and the economy by raising interest rates.
Stocks rose in Tokyo, Hong Kong, Seoul and Sydney, but fell in Shanghai. U.S. futures surged, and so did oil prices.
Monday was the first US trading day after the data was released. Job market stronger than expected May sustain inflation. This bolstered hopes that the Fed could raise rates again at its next meeting.
new in japan central bank governor Late Monday, he indicated he expects the country’s ultra-low interest rate policy to remain in place without dramatic changes.
Bank of Japan Governor Kazuo Ueda has warned that keeping inflation close to its 2% target may ultimately require a long-term review of policies aimed at promoting stronger economic growth. I said yes.
“As a result, Governor Ueda is not only trying to keep the course of policy temporarily unchanged, but is actually doubling down on policy direction now,” Mizuho Bank said.
“The rising risk of a global recession alongside the slowness of monetary policy is a sharp reminder to the Bank of Japan that the current clear tightening could be tripped by a global recession. It means that we are aware of it,” he said.
In Tokyo, the Nikkei 225 Index rose 1.1% to 27,923.37.
South Korea’s Kospi rose 1.3% to 2,545.73. The Bank of Korea kept its policy rate unchanged at 3.5% for the second time in a row. It is one of many regional banks currently slowing or reversing rate hikes due to signs of global economic weakness.
Hong Kong’s Hang Seng rose 0.3% to 20,385.68 and the S&P/ASX 200 rose 1.3% to 7,311.10. In Mumbai, Sensex rose 0.3% to 60,051.94.
The Shanghai Composite Index fell 0.3% to 3,305.19.
On Monday, the S&P 500 was up 0.1% at 4,109.11. The Nasdaq Composite fell less than 0.1% to 12,084.36 as the big tech stocks fell more than the rest of the market. The day before, it was down 1.4%. The Dow Jones Industrial Average was stable, up 0.3% at 33,586.52.
Rising interest rates tend to hit tech and other high-growth stocks hardest, with Apple and Microsoft being the two biggest drags on the S&P 500. Apple dropped 1.6% and Microsoft dropped 0.8%.
Tesla also fell 0.3% after unwinding sharper early losses. The company has slashed prices across its U.S. model lineup in an apparent attempt to lure buyers amid rising interest rates that make auto loans more expensive.
The Federal Reserve (Fed) has hiked interest rates at a breakneck pace over the last year in hopes of keeping high inflation in check.You can do it for a higher fee, but frankly economic slowdown All at once. This increases the risk of future recessions and drives down the prices of stocks, bonds and other investments.
The Fed has been forced to raise interest rates at every meeting over the past year, to near zero in early 2022.
On Wednesday, the US government will release its latest monthly update on prices across the economy at the consumer level. Economists expect inflation to show a slowdown last month, well above the Fed’s target.
This week also marks the beginning of the earnings reporting season for some of America’s largest companies. Delta Air Lines, JPMorgan Chase and UnitedHealth Group will be the first S&P 500 companies to report to investors how much they have made in his first three months of the year.
Expectations are low, with analysts predicting the steepest decline in earnings per share for S&P 500 companies since the pandemic devastated the economy in the spring of 2020.
In other trading on Tuesday, US benchmark crude rose 76 cents to $80.50 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international price benchmark, rose 73 cents to $84.91 a barrel.
The dollar fell from 133.59 yen to 133.38 yen. The euro rose from $1.0864 to $1.0896.
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https://www.local10.com/business/2023/04/10/asian-shares-higher-after-report-shows-resilience-in-us-jobs/ Asian stocks broadly higher after turbulent day on Wall Street