Asian Stock Market: Trades in red amid cautious market mood on China concerns, Fed eyed


  • Asian stocks mostly trade in red following mixed cues from Wall Street.
  • IMF comments on China, Assurance from Evergrande on bond coupon payment stabilizes the market volatility.
  • BOJ maintains status quo on monetary policy, FOMC in focus.

Asian stocks attempt to stabilise on Wednesday after the previous two session’s sell-off. Investors remain cautious ahead of the US Fed monetary policy decision and on the concerns of the spread of the delta variant in Asia-Pacific.

MSCI’s broadest index of Asia-pacific shares outside Japan declined 0.3%.

The Asian Development Bank (ADB) slashed Asia’s Gross Domestic Product (GDP) growth at 7.1% from 7.3% it estimated in April. The region includes China, South Korea, India, Singapore while excluding Japan, Australia, and New Zealand.

The Chinese property giant Evergrande contagion risk subsides after the main unit of the group said that it would make bond interest payment on September 3 after a private negotiations with bondholders.

In addition to that, the International Monetary Fund (IMF) Chief Economist Gita Gopinath said China has sufficient tools and policy instruments to prevent Evengrande systemic crisis.

The Shanghai Composite Index declined 0.75% as traders returned from the long weekend. The PBoC left its key interest rates steady for the 17th straight month at its September fixing.

Japan’s Nikkei 225 fell 0.62% after the Bank of Japan left its key rate unchanged at -0.1%.

The ASX 200 rose 0.6% after Reserve Bank of Australia’s (RBA) meeting minutes showed that the economy will return to its pre-Delta path by mid-2022.

The US Dollar Index remains strong above 93.25% ahead of the crucial Fed Interest rate decision due later in the day.


 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stays afloat above 1.1600 as inflation data meet expectations

EUR/USD came under modest bearish pressure in the early European session and continues to have a difficult time regaining its traction. After the data from the euro area revealed that annual CPI stayed unchanged at 3.4% in September, the pair stays relatively calm above 1.1600.

EUR/USD News

GBP/USD drops below 1.3800 as UK CPIs disappoint

GBP/USD eases below 1.3800, as an unexpected decline in the UK inflation douses the BOE rate hike expectations. Covid resurgence in the UK also undermines the pound. The pair could find support from a broadly subdued US dollar and fresh Brexit optimism. 

GBP/USD News

Gold: $1791 appears a tough nut to crack for XAU/USD bulls

Gold price is holding the higher ground, extending the previous advance amid a pullback in the US 10-year Treasury yields from five-month highs of 1.672%.

Gold News

Crypto markets prepare for final pullback before next leg up

Bitcoin price is due for a retracement as MRI flashes a sell signal on the daily chart. Ethereum price continues to consolidate under the $3,938 resistance level. Ripple price slides below the $1.09 support level as the crypto markets prepare for a minor correction.

Read more

Tesla: Why it is time to sell TSLA stock

Tesla breaks higher again on Monday as we had called. TSLA to release earnings after the close on Wednesday. Is it time to sell Tesla stock now before earnings?

Read more

Forex MAJORS

Cryptocurrencies

Signatures