Stocks in Asia and the Pacific closed mostly lower on Tuesday (3), in a day of reduced liquidity amid holidays in China and Japan and marked by the first rate hike in Australia in more than 11 years.
With the Chinese and Japanese markets closed, attention turned to the Central Bank of Australia (RBA), which today raised its key interest rate by 25 basis points, to 0.35%, in an attempt to contain the domestic inflation, which is at its highest level in two decades.
The rate hike, the first since November 2010, beat many analysts’ expectations and boosted the Australian dollar.
On the Sydney Stock Exchange, the largest in Oceania, the RBA’s gesture had a negative effect, and the S&P/ASX 200 index fell 0.42% to 7,316.20 points, pressured by real estate stocks.
In the Asian region, the Hang Seng was marginally up 0.06% in Hong Kong, at 21,101.89 points, while the Taiex was down 0.56% in Taiwan, at 16,498.90 points, with both returning from holidays. . In Seoul, the South Korean Kospi fell 0.26%, to 2,680.46 points.
Investors in Asia are also looking forward to the Federal Reserve’s (Fed, BC) monetary policy decision, to be announced this Wednesday (4th).
The Fed is expected to be more aggressive and raise rates by 50 basis points, also to combat inflationary pressures, most recently fueled by the war between Russia and Ukraine.
In March, the US central bank raised its rate by 25 basis points.
Source: CNN Brasil
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