{"id":10321,"date":"2022-08-30T16:26:00","date_gmt":"2022-08-30T16:26:00","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=10321"},"modified":"2022-08-30T16:26:00","modified_gmt":"2022-08-30T16:26:00","slug":"asian-markets-mixed-as-traders-steel-for-more-rate-hikes","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/asian-markets-mixed-as-traders-steel-for-more-rate-hikes\/","title":{"rendered":"Asian markets mixed as traders steel for more rate hikes"},"content":{"rendered":"

Asian markets mixed as traders steel for more rate hikes. Asian markets were mixed Tuesday with confidence at a premium as traders contemplate the prospect of more Federal Reserve interest rate hikes and a possible recession.<\/p>\n

Wall Street suffered another day in the red after Friday\u2019s capitulation in response to a warning from US central bank boss Jerome Powell that more tightening was needed to bring inflation down from four-decade highs.<\/p>\n

Bets on a third successive three-quarter-point increase next month have surged since his comments, which blew a hole in a recent rally across markets from their June lows.<\/p>\n

Now there is a growing fear that the Fed\u2019s priority of beating inflation at any cost will damage the world\u2019s top economy, which is already in a technical recession following two straight quarters of contraction.<\/p>\n

Read more:\u00a0Asian markets drop on rate worries ahead of inflation data<\/a><\/strong><\/em><\/p>\n

“The markets are spooked because they are afraid that the Fed could create a hard landing — that they\u2019ll raise rates into a recession, and that will be really painful for the economy and for corporate profits,” Terri Spath, of Zuma Wealth, told Bloomberg Television.<\/p>\n

After Monday\u2019s retreat, Asian equities fared a little better, though sentiment remained weak.<\/p>\n

Tokyo, Sydney, Seoul, Singapore, Jakarta and Wellington all rose, but Hong Kong, Shanghai and Manila sank.<\/p>\n

In light of the sell-off in response to the Powell speech, Minneapolis Fed President Neel Kashkari<\/a> said it appeared traders had now accepted the fact that policymakers were focused on fighting price rises.<\/p>\n

“People now understand the seriousness of our commitment to getting inflation back down to two percent,” he said.<\/p>\n

But while central banks around the world commit to lifting rates to fight inflation, a major driver of the gains continues to cause a headache.<\/p>\n

A warning from OPEC kingpin Saudi Arabia that it could cut output has put fresh upward pressure on the commodity, offsetting concerns about a hit to demand from any economic slowdown.<\/p>\n

Waning optimism about an imminent Iran nuclear deal, fresh unrest in Libya and China\u2019s economic travails were adding to the oil market\u2019s strength.<\/p>\n

“A combination of fresh supply risks from Libya, along with uncertainty over the upcoming OPEC+ meeting, has provided a boost,” Warren Patterson, of ING Groep NV, said.<\/p>\n

But he added that “fundamentally, the market is in a more comfortable state, and in the absence of a large supply disruption or OPEC+ intervention, it is difficult to see significant upside in the short term”.<\/p>\n","protected":false},"excerpt":{"rendered":"

Asian markets mixed as traders steel for more rate hikes. Asian markets were mixed Tuesday with confidence at a premium as traders contemplate the prospect of more Federal Reserve interest rate hikes and a possible recession. Wall Street suffered another day in the red after Friday\u2019s capitulation in response to a warning from US central […]<\/p>\n","protected":false},"author":8,"featured_media":10322,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,9,3],"tags":[5939,6362,427],"class_list":["post-10321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-latest-news","category-world","tag-asian-markets","tag-opec","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/10321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=10321"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/10321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/10322"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=10321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=10321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=10321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}