Asian Stock Market: Traces weaker S&P500 on ultra-hawkish Fed guidance, oil weakens


  • Asian indices have tumbled after following the negative cues from Wall Street.
  • Fed hawkish guidance has accelerated the risk-off impulse in the Asian markets.
  • BOJ’s continuation of its dovish stance has supported Nikkei225 on the downside.
  • Lower oil prices will delight the Asian indices by trimming their fiscal deficit.

Markets in the Asian domain have shifted into a bearish trajectory after tracing negative cues from S&P500. Asian equities have fallen dramatically after a scrutiny of the roadmap provided by the Federal Reserve (Fed) to respect its foremost priority of bringing price stability.

At the press time, Japan’s Nikkei225 and ChinaA50 tumbled 0.80%, and Hang Seng plunged almost 2%. Outside Tokyo, Australian markets are closed on account of National Mourning Day.

Bloods spilled on Wall Street on Wednesday after the Fed chair Jerome Powell sounded extremely hawkish while dictating the guidance on interest rates. A third consecutive 75 basis points (bps) rate hike announcement didn’t do any worse as it was already priced in by the market participants. However, the target for terminal rates at 4.6% brought carnage.

Fed Powell and his colleagues are ready to sacrifice growth projections, employment, and demand for housing and durable goods to drag the inflation rate to desired levels.

Meanwhile, Japanese equities have trimmed their losses after a weak open. Nikkei225 is gaining strength on a continuation of the ‘dovish’ stance on interest rates by the Bank of Japan (BOJ). The BOJ has kept its policy unchanged despite the headwinds of sheer depreciation in the Japanese yen against the remaining G-7 countries. No doubt, the dovish BOJ will keep pouring liquidity into the economy but it will keep the market cap of imported-inputs-dependent companies on the tenterhooks.

On the oil front, oil prices are expected to remain in the grip of bears as soaring interest rates by western central banks will keep the oil demand lower. The black gold has declined again towards $82.00 and will surrender the support sooner. It is worth noting that lower oil prices will benefit the Asian indices as it will delight them in reducing the fiscal deficit.

Nikkei 225

Overview
Today last price 27235.59
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 27235.59
 
Trends
Daily SMA20 27879.46
Daily SMA50 27902.07
Daily SMA100 27330.33
Daily SMA200 27361
 
Levels
Previous Daily High 27667.11
Previous Daily Low 27198.04
Previous Weekly High 28841.53
Previous Weekly Low 27433.34
Previous Monthly High 29245.74
Previous Monthly Low 27530.7
Daily Fibonacci 38.2% 27377.22
Daily Fibonacci 61.8% 27487.93
Daily Pivot Point S1 27066.72
Daily Pivot Point S2 26897.84
Daily Pivot Point S3 26597.65
Daily Pivot Point R1 27535.79
Daily Pivot Point R2 27835.98
Daily Pivot Point R3 28004.86

 

 

 

 

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