- Asian shares seesaw amid a quiet session with Labor Thanksgiving Day in Japan.
- Powell’s re-nomination as the Fed Chair boost rate hike concerns and yields.
- US warships again sail on Taiwan Strait, covid woes renew in the west.
- Preliminary PMIs for November eyed ahead of Wednesday’s FOMC Minutes.
Off in Japan joins a light calendar to offer sluggish Asian session on Tuesday. Even so, the Asia-Pacific shares remain pressured amid firmer yields as Fed hawks cheer US President Joe Biden’s decision to nominate Jerome Powell for another term as the Federal Reserve (Fed) Chair and Richard Clarida for Vice-Chairman.
That said, MSCI’s index of Asia-Pacific shares outside Japan rises 0.75% whereas the US 10-year Treasury yields remain lackluster around 1.62% ahead of the European session.
Australia’s ASX 200 prints mild gains as mixed PMIs from the Commonwealth Bank of Australia joined comments from Marion Kohler, Head of Domestic Markets at the Reserve Bank of Australia (RBA). Alternatively, New Zealand’s NZX 50 prints mild losses despite downbeat Q3 Retail Sales amid strong bets over the Reserve Bank of New Zealand’s (RBNZ) rate hike during Wednesday’s monetary policy decision.
Elsewhere, fears of China’s softer economic growth and fresh covid woes from the West challenge the equity bulls from Beijing, which in turn drowns shares from South Korea, Indonesia, India and Hong Kong. Also weighing on the Asia-Pacific stocks are fears of fresh US-China tussles as the US warships again sail on the sensitive Taiwan Strait on Tuesday.
On a broader front, firmer US Treasury yields probe equity bulls ahead of the preliminary readings of the November month PMIs for the UK, Eurozone and the US.
Moving on, PMIs and Fed-rate-hike concerns may challenge the share markets while talks over covid resurgence and stimulus from Japan, China and the US can keep buyers hopeful.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.