Asian Stocks Down as Wall Street Enters Bear Market over Recession Fear -Breaking
Investing.com – Asia Pacific stocks were down on Tuesday morning after Wall Street while bond yields hit a two-decade high over fears of recession caused by more aggressive interest rate hikes from the U.S Federal Reserve.
Japan’s dropped 1.95% between 10:39 PM ET and 2:39 AM GMT.
South Korea’s fell 1.26%
After a holiday in Australia, markets were reopened but the turnover was only 0.35%.
Hong Kong’s Index was down 0.94%
China’s was down 0.81% while the was down 1.08%.
The markets were still affected by concerns that investors might expect further interest rate rises from the Fed. This could lead to a possible recession. The benchmark 10-year Treasury yields climbed to their highest point in ten years on Monday.
It was down by 3.88% while it was up by. Goldman Sachs predicted a 75 basis point increase in the interest rates starting Wednesday.
“The U.S. will see rate rises faster and higher than Wall Street has been expecting,” Ord Minnett advisor James Rosenberg told Reuters.
“There will likely be the double impact of earnings forecasts being trimmed and further price to earnings derating.”
Raising interest rates is one of the ways for the Fed to tame rocket-high inflation, with the year on year in May, a fresh 40-year high.
Global high inflation stoked by supply-chain and commodity-market disruptions, China’s COVID-19 curbs, and Russia’s war in Ukraine remains a concern. Moves from global central banks are on investor’s radars.
On Thursday, the policy decision will be handed down by both parties. The other party will do so on Friday.
The data side of things is that the will be due Tuesday and China’s key economic activities data, including, on the day after.
The price of cryptocurrencies fell below $21,088