Asian stocks followed global stocks declining after fears that the central economic stability of the central bank gave the worst day on Wall Street in nearly five months.
Japan led the falls in Asian markets Wednesday morning, with Topix dropping by 2.6%, while Australia’s S&P / ASX 200 index fell 1.8% and Hong Kong’s Hang Seng index and China’s CSI 300 dropped by almost 1%. in the morning business.
The sale of stock markets comes after policymakers at the US Federal Reserve and the Bank of England said this interest rates go up it may come sooner than the market expected due to rising prices.
The prospect of rapid binding has sent out yields, which move in contrast to bond prices, rising sharply. Yields over 10 years of savings in the US Treasury exceeded 0.2 points last week, which encouraged retail sales. The S&P 500 closed 2% down Tuesday, its falling one day the worst as of May, when the Nasdaq Composite index managed by technology fell 2.8 percent.
Last week’s budget could be reduced $ 120bn-a-month property purchase showing that half of its members were expecting higher interest rates by 2022. This was followed by a warning from the Bank of England that The decline in corporate growth in the UK could exceed 4 percent until next year.
“This does not sound like a good situation as we move into the fourth phase,” said Robert Carnell, head of Asia-Pacific research at ING, referring to the Treasury’s rise in inflation, rising prices and concerns about transmission from Chinese lender Evergrande, which rocked international markets last week.
The yen continued to oppose the US dollar on Wednesday, with the Japanese currency affecting the lowest since March 2020 falling by about 2% since last week.
The yen reached Y111.68 to the US dollar where there was political instability to elect a Japanese prime minister and members of the ruling Liberal Democratic Party today.
Traders said it was difficult to see the currency fluctuate on all sides until the results were known, adding that the yen was like a double barometer on US inflation and commodity prices.
More US yields could attract Japanese investment, says Shusuke Yamada, a Japanese businessman and legal expert at Bank of America. The decline in trade in August in August, then, was an indication of the country’s sentiment in terms of consumer spending.
Concerns about inflation have risen sharply as a result of rising global prices. Brent, international symbol, jumped over $ 80 a barrel Tuesday for the first time since October 2018, when rising gas prices prompted countries to look elsewhere for their energy needs.
Oil prices fell in Asian markets on Wednesday and Brent cut about 1% to $ 78.19 a barrel.