Stocks in Asia fell and the dollar strengthened Thursday after the Federal Reserve signaled interest rates will be higher for longer. Benchmark indexes declined, with a regional equity gauge set to post its biggest loss in almost a month. The MSCI China Index fell 1.4% and headed for the lowest close since November as pessimism persisted about the nation’s economic recovery. Tech stocks in Hong Kong slid over 2%, following losses on Wall Street, with contracts for US benchmarks drifting lower in Asian trading. One bright spot in Asia were Chinese property developers which rose after new measures to ease home-buying rules.
Signs of improvement in Chinese real estate could spur Chinese stocks higher given the steep declines this year James Wang, the Head of China Strategy at UBS Group AG’s investment research unit, said on Bloomberg Television. “If property sales in China can stabilize and improve a little bit from where we are, and people see that trend continue, that makes investors feel a lot better,” Wang said. The dollar rallied against major currencies, but was flat against the yen, which traded around 148 per dollar after weakening on Wednesday to the lowest level since November. The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Policymakers also see less easing next year, with the median forecast for the federal funds rate at 5.1% by year-end, up from 4.6% when projections were last updated in June. The stronger dollar added pressure on the yen, heightening the prospect of official support for the Japanese currency, Vail said. “Japan’s Ministry of Finance is likely to intervene in large fashion at 150 per dollar because it is hard to tolerate more inflationary pressure.” Swap contracts priced in greater-than-even odds of another quarter-point hike this year and fewer rate cuts next year than previously anticipated. Central banks will be in focus Thursday as well, with officials in the Philippines, Indonesia and the UK set to announce policy decisions. The Phillippines central bank is likely to lift rates by a quarter point, while Indonesian policymakers are seen keeping rates on hold, according Bloomberg Economics. After UK inflation unexpectedly slowed, traders pared bets on further tightening steps by the Bank of England, with the market pricing a 50% chance of a quarter-point hike later Thursday. They are also betting that if the BOE does hike, it will be its last. Goldman Sachs and Nomura went further, saying rates have already peaked. Bloomberg Economics expects an increase. oil’s breakneck rally is taking a breather as a smaller-than-expected drop in US crude stockpiles bolstered technical resistance to further gains, with West Texas Intermediate’s futures dropping below $90 a barrel. US After Hours FDX +5.2% higher on earnings; KBH -2.6% lower on earnings; KDP -0.3% and DHI get new CEOs.
Nikkei -1,27% Hang Seng -1,20% CSI -0,58% Shanghai -0,52% Shenzen -0,72%
Eur$ 1,0635 CNH 7,3085 CNY 7,3005 JPY 148,36 GBP 1,2320 CHF 0,8999 RUB 96,2094 TRY 27,01 WTI$ 90,02 Gold 1,928,31 BTC 27,060 ETH 1,622
S&P -0,34% Nasdaq -0,45% EuroStoxx -1,07% FTSE -0,96% Dax -0,98% SMI
Macro :
- FOMC Sees Longer-Run Median Fed Funds Rate at 2.5%
- Fed Leaves Rates Unchanged, Signals One More Hike This Year (2)
- A Popular Quant Trade Misfiring on Wall Street Rallies Overseas
Keep an eye on :
Keep an eye on :
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- REP SM : Repsol Pursues Arbitration Case Against Venture Global: Reuters
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