By Steffen Gosenheimer
TOKYO/HONG KONG (Dow Jones)–Following Wall Street’s volatile and ultimately negative outcome to the rate hike and in particular the interest rate forecasts of the US Federal Reserve, it also went down on the East Asian stock exchanges the day after. However, with the exception of Hong Kong (-1.9% in late trading), the losses were rather moderate.
While the US interest rate hike was as expected at 75 basis points, the central bankers forecast further more aggressive interest rate hikes in the near future than had previously been expected on the market. Fed Chairman Powell once again noted that the fight against inflation would not be possible without pain for the economy and that the chances of a soft landing had diminished. However, the central bankers are still not assuming a recession, despite falling growth forecasts.
Tokyo dropped 0.6 percent to 27,153 points. Here, the minus had decreased slightly over the course of the year after the Japanese central bank had confirmed its ultra-expansive course unchanged. In Seoul, South Korea, the index also lost 0.6 percent.
Shanghai did a little better again with only a small minus of 0.3 percent. According to the market experts at UOB, the mood here was somewhat supported by statements from the Chinese central bank, according to which the average interest rate for corporate loans was 4.05 percent at the end of August, the lowest level since it was recorded. The background are measures taken by Beijing to stimulate the economy. There was no action in Sydney due to a commemoration of the Queen’s death.
The analysts at China Industrial Securities International are initially expecting continued pressure on the stock markets. Risk aversion is likely to remain in the environment given the looming recession and the escalation in Russia’s war of aggression in Ukraine.
Yen very weak
On the currency market, the dollar continued to show strength on the prospect of further rate hikes, with the dollar index recently up 1 percent. At 145.85 per dollar, the yen was much cheaper than at the same time the previous day at 144, because of the ever more divergent monetary policy in Japan and the United States. The Japanese 10-year yield fell 2 basis points to 0.23 percent, while in the US it is 3.54 percent.
Participation fantasy at Toshiba
Among the individual values, Toshiba in Tokyo was able to resist the downward pull with a plus of 2.2 percent. According to a report, the state-owned Japan Investment Corp. together with the investment company Bain Capital support the restructuring at Toshiba.
Index (stock market) last +/- % % YTD end
S&P/ASX 200 (Sydney) Holiday
Nikkei-225 (Tokyo) 27,153.83 -0.6% -5.1% 08:00
Kospi (Seoul) 2,332.31 -0.6% -21.7% 08:00
Shanghai Comp. 3,108.91 -0.3% -14.6% 09:00
Hang Seng (Hongk.) 18,082.65 -2.0% -21.2% 10:00
Straits-Times (Sing.) 3,252.17 -0.3% +4.3% 11:00
KLCI (Malaysia) 1,439.42 -0.5% -7.7% 11:00
FOREX last +/- % 00:00 Wed, 9:04% YTD
EUR/USD 0.9821 -0.2% 0.9839 0.9898 -13.6%
EUR/JPY 143.16 +1.0% 141.79 142.09 +9.4%
EUR/GBP 0.8749 +0.2% 0.8730 0.8728 +4.1%
GBP/USD 1.1225 -0.4% 1.1275 1.1341 -17.1%
USD/JPY 145.82 +1.2% 144.05 143.58 +26.7%
USD/KRW 1,413.87 +1.2% 1,396.71 1,397.39 +18.9%
USD/CNY 7.0954 +0.7% 7.0490 7.0515 +11.6%
USD/CNH 7.1039 +0.4% 7.0744 7.0615 +11.8%
USD/HKD 7.8492 -0.0% 7.8498 7.8495 +0.7%
AUD/USD 0.6578 -0.8% 0.6633 0.6662 -9.4%
NZD/USD 0.5807 -0.8% 0.5854 0.5883 -14.9%
Bitcoin
BTC/USD 18,738.67 +1.6% 18,441.27 18,872.02 -59.5%
ROHOEL last VT-Settlem. +/- % +/- USD % YTD
WTI/Nymex 83.06 82.94 +0.1% +0.12 +18.0%
Brent/ICE 89.96 89.83 +0.1% +0.13 +21.7%
GAS VT Settlem. +/- EUR
Dutch TTF 187.50 189.78 -1.2% -2.28 +199.2%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,657.18 1,674.20 -1.0% -17.02 -9.4%
Silver (Spot) 19.32 19.63 -1.5% -0.30 -17.1%
Platinum (Spot) 896.95 912.90 -1.7% -15.95 -7.6%
Copper Future 3.48 3.48 -0.1% -0.00 -21.4%
YTD based on the closing price of the previous day
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DJG/DJN/gos/cln
(END) Dow Jones Newswires
September 22, 2022 03:13 ET (07:13 GMT)
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