Asian Stocks Rise, Investors Reflect on PBOC Economic Measures By Investing.com
By Gina Lee
Investing.com – Asia-Pacific stocks were mostly up Tuesday morning as investors weigh against a potentially faster policy tightening from the U.S. Federal Reserve.
Japan was up 0.32% at 11:47 p.m. ET (02:47 GMT) while South Korea was up 0.9%.
In Australia, the gained 0.69%, with the publication of the minutes of its last meeting.
Hong Kong slipped 2.84%.
China edged down 0.07% while China edged up 0.01%.
The People’s Bank of China has announced new measures to counter the economic impact of the latest COVID-19 outbreak in China. The central bank will release its prime rate on Wednesday after cutting the reserve requirement rate for most banks, but not the interest rate on Friday.
St. Louis Fed President James Bullard said interest rate hikes of 75 basis points, while not the base case, should not be ruled out as the central bank needs to act quickly to curb inflation. Chicago Fed President Charles Evans will speak later today, and will also speak alongside San Francisco Fed President Mary Daly a day later.
Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde will speak at an International Monetary Fund event on Thursday. Bank of England Governor Andrew Bailey will speak on Friday.
US Treasuries stabilized after the long-term decline, but remained near their highest levels in more than three years. A debate over whether inflation is peaking continues after US prices hit their highest intraday level in more than 13 years and highlighted price concerns.
Supply chain disruptions from the COVID-19 lockdowns in China and the war in Ukraine continue to maintain upward pressure on prices. The World Bank also cut its global economic expansion forecast for 2022 to 3.2% due to Russia’s invasion of Ukraine on February 24.
“Spikes in yield have often caused problems for equities, but we believe the past is an imperfect guide in a world shaped by supply shocks,” said strategists at BlackRock (NYSE:) Investment Institute, led by Chief Global Investment Strategist Wei Li, in a note. .
“We see central banks normalizing quickly – but without dampening the economy. This should keep real yields low and support equity valuations.
The war in Ukraine has also escalated, with Ukrainian President Volodymyr Zelenskiy saying on Monday that Russia has begun its campaign to conquer Ukraine’s Donbass region. Russia continues to move troops and equipment into the region.
In France, Emmanuel Macron and Marine Le Pen will participate in a debate on the presidential election before the second round of voting on April 24. Macron is currently slightly ahead of his right-wing rival after the first round of voting on April 10.
The Fed is also releasing its own on Wednesday, and investors are also awaiting earnings from American Express Co. (NYSE:), China Telecom (HK:), IBM (NYSE:), Johnson & Johnson (NYSE:), Netflix Inc. (NASDAQ:) and Tesla Inc. (NASDAQ:).