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Asian Stocks Down, Focus on China Evergrande Debt Crisis and Fed Policy Decision By Investing.com

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© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were down on Monday morning, with the focus on China Evergrande Group’s (HK:) continuing debt crisis and the from the U.S. Federal Reserve.

Hong Kong’s slid 1.96% by 9:32 PM ET (1:32 AM GMT) and in Australia, the fell 1.30%.

Monday was a day of rest for the Korean, Japanese, Chinese and Japanese markets.

As the Fed is preparing to announce its policy decision, U.S. 10-year Treasury yields rose as it prepares for Wednesday’s announcement. Due to Japan’s holiday, cash Treasuries won’t trade in Asia on Monday.

The upcoming Thursday is a busy day for investors. The steadied.

They also await the Fed policy decision, due to be handed down on Wednesday, for more clues on the central bank’s asset tapering timeline.

“It’s really going to be tied to when and how quickly tapering comes,” Knights of Columbus Asset Advisors President and Chief Investment Officer Tony Minopoli told Bloomberg.

“We don’t think the Fed’s really going to be able to telegraph that too much. We have inflation building in the system, wages are rising, supply chains firmly driving prices, and with so many central banks having to make rate decisions we think it’s a bit jittery,” he added.

Jerome Powell, the Fed’s Chairman and Governor Michelle Bowman will be discussing economic recovery in COVID-19. Richard Clarida, Vice Chairman of Fed, will also participate.

Other central banks handing down policy decisions throughout the week include the and the , whose Wednesday and Thursday respectively.

Janet Yellen, Treasury Secretary in the U.S. warned that the U.S. government would run out of money around October without any action regarding the debt ceiling. She also called on lawmakers to take the necessary steps to avert an “economic catastrophe”. Uncertainty also remains over U.S. President Joe Biden’s $4 trillion economic agenda.

Iron ore will be the main focus, as it has fallen below $100 per metric ton for more than a month. Canadian federal elections will be held later in this day, so voters can cast their votes later.

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