Stocks in Asia dropped after renewed concerns about higher-for-longer US interest rates fueled a selloff on Wall Street, with all eyes on the Federal Reserve’s policy decision due later Wednesday. Japan’s Nikkei 225 index slid after recording its worst month since December 2022. Australian shares also declined, with many markets in the region closed for a public holiday. The S&P 500 fell the most since January after a jump in a key gauge of US labor costs reinforced bets that officials will keep rates at a two-decade high for some time. US stock futures slipped in Asian trade. The yen was steady with an index of the dollar stabilizing after gaining the most in more than two weeks on Tuesday. Treasury two-year yields edged slightly lower after reaching the highest level since November, while Australia’s 10-year yield jumped six basis points early Wednesday. In the corporate world, Japan’s Lasertec Corp shares climbed as much as 14%, after the semiconductor equipment maker reported strong order growth and consensus-beating third-quarter earnings. Warren Buffett-favored Japanese trading firm Mitsui & Co. announced that it will buy back up to 200 billion yen ($1.3 billion) worth of shares, as it looks to boost investor returns. In other markets, gold steadied after extending its decline from a record high reached in mid-April. Oil continued to slip as the potential for a cease-fire in the Middle East eased tensions. The last time Fed Chair Jerome Powell spoke, he pointed to the lack of further progress in bringing inflation down and to enduring strength in the labor market. The latest inflation signals — in tandem with expectations for a robust employment report on Friday — aren’t likely to lead him to change his tune. A plunge in consumer confidence further weighed heavily on US equities — which suffered their worst month since September. In late hours, Amazon.com Inc. reported strong sales for its cloud unit amid rising artificial-intelligence demand. Advanced Micro Devices Inc., the second-biggest maker of computer processors, gave a lukewarm revenue forecast for the current period. A survey conducted by 22V Research shows that only 16% of investors polled expect a “risk-on” reaction to Wednesday’s Fed decision, 44% said “risk-off,” and 40% “negligible/mixed.” The tally also revealed that two-thirds of respondents still expect a rate cut in 2024. Sticky US inflation this year isn’t necessarily bad news for the stock rally as higher yields are a reflection of strong economic growth, according to HSBC strategists led by Max Kettner. US After Hours PINS +15.7%, NARI +10.8%, ATEN +6%, AMZN +2.3% higher on earnings; SBUX -12.4%, SMCI -10.3%, SWKS -9.3%, AMD -6.8% lower on earnings.
Nikkei -0.30% Hang Seng +0.09% CSI -0.54% Shanghai -0.26% Shenzen -0.70%
Eur$ 1.0656 CNH 7.2494 CNY 7.2410 JPY 157.88 GBP 1.2478 CHF 0.9210 RUB 93.4501 TRY 32.4194 WTI$ 81.18 -0.92% Gold 2,288 +0.08% BTC 59,915 +0.08% ETH 2,985 +0.78%
S&P -0.10% Nasdaq -0.34% EuroStoxx Close FTSE +0.01% Dax Close SMI Close
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Keep an eye on :
Keep an eye on :
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