HONG KONG, June 14 (Reuters) – Asian stocks fell sharply on Tuesday and reached a two-decade high after the Wall Street bearish market reached a milestone amid fears that aggressive US interest rate hikes could push the world’s largest economy. In recession.
Wide index of MSCI of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) It fell 0.45% in volatile trading, recovering some of its previous losses.
Australia’s benchmark S&P / ASX200 (.AXJO) Japan’s Nikkei stock index ended 3.55% lower (.N225) 1.32%, down from 2% in the previous session.
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The negative tone in Asia saw the Goldman Sachs forecast a 75 basis point interest rate hike at the Federal Reserve’s next policy meeting on Wednesday, following a dark US session on Monday. read more
However, as investors moved away from the darkness of European trade, the futures of the Pan-Region Euro 50 rose 0.83%, the German DAX futures 0.9% and the FTSE futures 0.62%. U.S. stock futures also added 1.17%.
“While the risk is clear from significant policy austerity, a complete recession is unlikely as the unemployment rate rises by two or more percentage points,” said Stephen Coucolas, managing director of the Canberra-based market. Economy.
“On the contrary, it is certain that growth will slow – which is the goal of policy austerity – and that inflationary pressures will begin to ease later this year.”
In Hong Kong, the Hong Cheng code (.HSI) Previous losses were 0.26% after trading in negative terrain throughout the day. CSI300 code for China (.CSI 300) Converted some of its lost land to 0.23%.
Expectations of aggressive US rate hikes are 8.6% higher than forecast, following inflation for the year to May.
“The U.S. market is the largest in the world, so the rest of the world will do the same when it’s cold,” said Clara Seong, global market strategist at JPMorgan Asset Management.
“There will be short-term fluctuations in Asia, but for the medium to long term in former Japan in Asia, revenue expectations have already been downgraded, so there is a relatively bright outlook here than in the rest of the world.”
Xiong said China’s deflation and the reopening of ASEAN economies from the COVID-19 locks could protect the region from a financial market crash.
Overnight on Wall Street, fears of a US recession shook the S&P 500 (.SPX) Nasdaq compound 3.88% lower (.IXIC) Lost 4.68%. Dow Jones Industrial Average (.DJI) Fell 2.8%.
By the generally used definition, the S&P 500 is just over 20% off its most recent record high, stabilizing the bear market.
The benchmark 10-year Treasury yield reached its highest level since Monday 2011 and the key part of the yield curve was reversed for the first time since April.
Yields on the benchmark 10-year Treasury notes rose 3.371% to 3.3466% against the US close on Monday. Two-year yields will rise, with traders expecting Fed fund rates to be higher, touching 3.3804%, compared to 3.281% in the US.
In the currency markets, the dollar index, which tracks the greenback against a basket of big currencies, was 104.98, hitting a two-decade high of 105.29 on Monday. read more
Against the Japanese yen, the US currency was at 134.59, just below its recent high of 135.17.
The European single currency was up 0.2% at $ 1.0432, losing 2.8% in a month.
Bitcoin was down about 4.5% at $ 21,416 on Tuesday, its 18-month high, extending its 15% fall on Monday as markets stopped Crypto lender Celsius from withdrawing. read more
Oil markets rose 0.13% to $ 121.08 a barrel in late trade on the Asian session, with most trades down on Tuesday. Brent crude was at $ 122.42 a barrel.
Spot prices rose 0.42% to $ 1,826.65 an ounce, giving gold a weak start.
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Report by Scott Murdoch in Hong Kong; Additional Report by Alun John; Editing by Sam Holmes
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