Asian markets soft lead from Wall Street on Wednesday while President Joe Biden shifts focus to the United States, which is expected to announce his latest trillion-dollar recovery plan for the world’s top economies Then I slipped.
While optimism about the recovery of the global economy and vaccination continues to buy regional stocks this week, trading floors say rebounds will cause inflation and force central banks to raise interest rates. Are concerned.
The problem has now come to the point where dealers are surprised by the good news, and rising government spending almost doubles the benchmark 10-year US Treasury yield (an indicator of future borrowing costs) from the beginning of the year. There is a possibility.
We will look at yields later in the day Biden plans to announce its infrastructure program. According to some reports, it could reach $ 4 trillion, which could require more borrowing and tax increases.
Axis strategist Stephen Ines also pointed out data showing that China’s factory activity in March far exceeded expectations, strengthening the view that Asian powers are on the road to recovery. ..
“China’s economic data is stable and non-manufacturing PMI data is higher than that, so risk assets are usually expected to be a drag on some extent,” he said.
“But we are now in such a strange policy paradox worldwide. Stronger data in China leads to a normalization mantra (People’s Bank of China), but solid data in the United States. Directly leads to higher yields as the data burns the fire of inflation.
“If you do, you go crazy, otherwise you go crazy, so you chose your stock wisely.”
Both Hong Kong and Shanghai were sluggish, but Tokyo was also dragged into finance after it became clear that Mitsubishi UFJ Financial was a lender that was hit by the collapse of Wall Street fund Arquegos.
Losses also occurred in Singapore, Seoul, Mumbai, Taipei, Manila and Jakarta, but increased in Sydney, Bangkok and Wellington.
London, Paris and Frankfurt were all open and fell.
The dollar remained at a year-long high against the yen as money moved from safe Japanese units due to the expected surge in economic growth.
Market strategist Luis Nabelia said the market is increasingly afraid that record low interest rates and ultra-loose monetary policy, which have helped rally fans over the year, are nearing the end.
“Investors have long been so rewarded with low-growth, low-interest, low-inflation economies that the idea that this paradigm will experience such seismic changes in such a short period of time is in the investment world. I caught a lot of them flat-I stepped in. “
The market is also preparing for the release of key US employment data that provides a guide to economic conditions.
Atlanta Federal Reserve Bank of Atlanta Governor Raphael Bostic said he expects a recovery in forecasts to mean “one million jobs a month could become the norm throughout the summer.”
Tokyo-Nikkei 225: 29,178.80, down 0.9% (closing price)
Hang Seng Index: 28,493.45, down 0.3%
Shanghai-Comprehensive: 3,441.91, down 0.4% (closing price)
London-FTSE 100: down 0.2% at 6,759.26
Dollar / yen: Greenwich Mean Time 2250 yen 110.38 yen up 110.73 yen
Euro / dollar: rising from $ 1.1721 to $ 1.1725
Pounds / $: UP from $ 1.3739 to $ 1.3750
Euro / Pound: Fall from 85.82 pence to 85.27 pence
West Texas Intermediate: $ 60.99 / barrel up 0.7%
Brent North Sea Crude: $ 64.63 / Barrel Up 0.8%
New York-Dow: 33,066.96 down 0.3% (closing price)
Asian Markets Track US Losses, Biden Spending Plan In Focus Source link Asian Markets Track US Losses, Biden Spending Plan In Focus