Asian Stocks Down as Investors Brace for Hawkish Fed -Breaking
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© Reuters. By Gina Lee
Investing.com – Asia Pacific stocks were mostly down on Monday morning, with a potentially tighter U.S. Federal Reserve monetary policy weighing on sentiment. Investors also took in Australia.
Japan’s was down 0.45% by 9:08 PM ET (2:08 AM GMT). The country’s for January was 54.6, and the country also released its .
South Korea’s slid 1.63%.
Australia’s PMI fell by 0.39%. Australia published its PMIs and own, at 55.3 and 45 respectively. It is expected to be released on Tuesday.
Hong Kong’s was fell 1.26%.
China’s was down 0.58% while the inched up 0.09%. Yu Yongding, a former member of the monetary policy committee of the People’s Bank of China, warned more government spending is needed to drive economic recovery as a looser monetary policy will not be enough.
Investors are now waiting for the Wednesday remark, as the last week has been one of the most difficult since the COVID-19 pandemic. It is important to know how an increasingly hawkish Fed might impact fixed income. U.S. Treasuries rose after falling at the start of last week. Inching up to 1.77%, the benchmark yield on a 10-year note.
There is also the risk that the Fed will tighten monetary policy more aggressively in 2022 than expected, Goldman Sachs Group Inc. economists warned.
On the same day, it will issue its policy decision.
Investors will also be waiting to see earnings reports for companies like Apple Inc. (NASDAQ 🙂 Boeing Co . (NYSE:), General Electric Company (NYSE :), 3M Company(NYSE :), Deutsche Bank AG (NYSE:), NA O.N. (DE:), Microsoft Corporation.
There is “likely a longer-term rotation toward value stocks measured in quarters, not weeks” unfolding, Evercore ISI chief equity and quantitative strategist Julian Emanuel said in a note.
“Investors should retain a balanced view, staying patient in committing new capital to equities.” n
A less accommodative Fed is also among the reasons why “you have a re-rating going on and certainly a bit of a, excuse the term, puking of some of the higher-spec, lower-quality segments of the market,” Charles Schwab (NYSE:) & Co. chief investment strategist Liz Ann Sonders told Bloomberg.
U.S. tensions with Russia over Ukraine continue to be on our radar. In fact, the U.S. has ordered relatives at its Kyiv Embassy to leave Ukraine.
On the data front, the U.S.’ fourth-quarter , and are due on Thursday.
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