Asian Stocks Mix Before Inflation, Earnings Report

Tokyo – Asian stocks were mixed on Wednesday after another volatile day on Wall Street as traders braced for an update on inflation and corporate earnings.

Benchmarks fell in Tokyo, Hong Kong and Taiwan, but rose in Shanghai and Sydney. In currency trading, the Japanese yen fell to his 24-year low of 146 against the dollar, raising hopes for another intervention by the Japanese government to boost the yen.

South Korea’s Kospi rose 0.5% to 2,203.47. This comes after the Bank of Korea raised its key rate by half a percentage point against the backdrop of a US Federal Reserve (Fed) rate hike and rising inflation risks from a weaker won and a rebound in global oil prices.

In currency trading, the Japanese yen fell to a 24-year low of 146 against the US dollar, raising hopes of another Japanese intervention to support the yen. The dollar traded from ¥145.80 to ¥146.26. The euro rose slightly from 97.07 yen to 97.13 cents.

A weaker yen will raise costs for both consumers and businesses that rely on imports for food, fuel and other needs, while greater foreign currency purchasing power is expected to boost tourism.Japan Fully reopened for individual travelers Traveling this week after being closed for over two years due to the pandemic.

Japan’s benchmark, the Nikkei 225, remained virtually unchanged, losing four points to 26,396.83. His S&P/ASX 200 in Australia saw him up 2.5 points to 6,647.50. Hong Kong’s Hang Seng fell 0.8 per cent to 16,693.18 and the Shanghai Composite he rose 0.7 per cent to 3,001.83.

ActivTrade’s Anderson Alves commented, “Asian traders will be cautiously positioning ahead of the European and UK trading sessions.” “Inflation is still a global issue and we are unlikely to bounce back from the recent hawkish rhetoric putting pressure on risk assets,” he said.

On Wall Street, the S&P 500 fell 0.7% on Tuesday, ending its fifth straight loss at 3,588.84. The Nasdaq dropped 1.1% to 10,426.19. The Dow Jones Industrial Average rose his 0.1% to 29,239.19 and the Russell 2000 Index rose one point (about 0.1%) to 1,692.92.

Recession fears are weighing on markets as stubbornly high inflation restrains consumer spending and the Federal Reserve and other central banks raise interest rates and slow economic activity.

International Monetary Fund on Tuesday cut that prediction The global economy is set to grow by 2.7% in 2023, down from a July estimate of 2.9%.Europe said risk of recession high amid rising energy costs Russian invasion of Ukraine.

Wall Street is watching the Federal Reserve Board (FRB) continue to aggressively raise benchmark interest rates and keep borrowing costs high.

Uber is down 10.4% and Lyft is down 12%. This follows a proposal by the US government to allow ride-hailing services and other gig economy companies to hire contract workers. status as a full-time employee.

The Fed released the minutes of its last meeting on Wednesday, which could give Wall Street its view on inflation and next steps.

Investors still expect the Federal Reserve to raise the overnight rate by three-quarters of a percentage point next month. This is three times the normal rate, with interest rates ranging from 3.75% to 4%. With virtually zero he started the year.

The government will also release a report on wholesale prices on Wednesday, providing an update on how inflation is affecting businesses. A high-profile report on consumer prices will be released on Thursday, while a report on retail sales will be released on Friday.

Also, a new set of corporate earnings is on the horizon. This may give a clearer indication of the effects of inflation.

PepsiCo, Delta Air Lines and Domino’s Pizza are among the companies reporting quarterly results this week. Banks such as Citigroup and JPMorgan Chase will also report results.

In energy trading, benchmark US crude fell 51 cents to $88.84 a barrel in electronic trading on the New York Mercantile Exchange. US oil prices fell 2% on Tuesday. Brent crude, the international price benchmark, fell 39 cents to $93.93 a barrel.

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Yuri Kageyama’s Twitter https://twitter.com/yurikageyama