Asia shares slip further as China casts a pall, dollar’s slide abates

asia-shares-slip-further-as-china-casts-a-pall,-dollar’s-slide-abates
Asia shares slip further as China casts a pall, dollar’s slide abates

Asian stocks declined on Tuesday due to weak Chinese economic data and uncertainty surrounding U.S. interest rates. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.63% in the morning session. Investors are eagerly awaiting the release of U.S. retail sales and industrial production data to gauge the strength of inflation. The outcome of these data points will provide insight into whether further rate hikes are necessary. The U.S. Federal Reserve, European Central Bank, and Bank of Japan are also set to hold policy reviews in the coming week.

Hong Kong stocks were affected by the previous day’s drop in Chinese stocks, which indicated that China’s post-pandemic economic rebound had ended. The Hang Seng index fell 1.74%, while the technology sector dropped 1.89%. China A shares were down 0.4% during the early session. However, Japan’s Nikkei managed to gain 0.18%.

The divergence in rate hike expectations between the U.S. Federal Reserve and the European Central Bank has led to a weakening of the dollar. Money markets have priced in a 25-basis-point rate hike from the Fed at its upcoming policy meeting, but there are expectations that rates may decrease as early as December. On the other hand, investors anticipate that the European Central Bank and the Bank of England will extend their rate-hike cycles. The Bank of Japan’s upcoming monetary policy meeting will also be closely watched to determine if it will begin phasing out its ultra-dovish policy stance.

In the currency market, the U.S. dollar index slightly dipped to 99.85, reaching its lowest level since April 2022. The euro strengthened by 0.11% to $1.1246. Benchmark 10-year notes remained flat with a yield of 3.7989%.

In commodities, U.S. crude rose 0.22% to $74.31 per barrel, while Brent increased by 0.18% to $78.64. Spot gold saw a 0.1% increase to $1,957.50 an ounce, and U.S. gold futures rose by 0.26% to $1,960.19 an ounce.

Overall, the Asian market is closely monitoring economic data releases and central bank policy reviews to gain clarity on the future direction of interest rates and inflation.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
  4. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    3 years ago
  5. BUSINESS
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    7 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    7 months ago
  10. BUSINESS
    Dubai faces down airline rivals with $50 bln jet orders
    7 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    7 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    7 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    7 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    7 months ago

Follow @rushhourdaily: