Stocks in Asia and the Pacific closed mostly lower on Monday, as investors digested the Chinese central bank’s decision to leave its key rates unchanged and speculated on the chances of a US recession .
the japanese stock index Nikkei fell 0.74% in Tokyo, to 25,771.22 points, while the South Korean Kospi fell more robustly in Seoul, of 2.04%, to 2,391.03 points, and the Taiex retreated 1.75% in Taiwan, at 15,367.58 points.
In mainland China, the Shanghai Composite was broadly flat, with a marginal loss of 0.04% to 3,315.43 points, but the less comprehensive Shenzhen Composite advanced 1.27% to 2,158.34 points. In Hong Kong, the Hang Seng was in the blue, up 0.42% to 21,163.91 points.
As expected, the Chinese central bank today kept its benchmark interest rates for short and long-term loans intact. For ING, however, interest rate cuts are still likely to occur in China in the coming months, as the world’s second largest economy is expected to continue to recover at a slow pace amid its “zero tolerance” policy against Covid. -19.
China and Japan have been maintaining monetary stimulus to support their economies, unlike the US, which is raising interest rates to try to contain the advance of domestic inflation, which is at its highest levels in about four decades.
Last week, the Bank of Japan (BoJ) reiterated its ultra-accommodative stance, while the Federal Reserve (Fed) announced the biggest rate hike since 1994, stoking fears that the US could slip into recession, factor that led the Dow Jones and the S&P 500 to post their biggest weekly losses since 2020 in the last week.
The possibility of a US recession has put pressure on global markets, including those in Asia. In Bank of America’s projection, the US economy has a 40% chance of facing a recession next year. This Monday, the New York stock exchanges will not operate due to a national holiday.
In Oceania, the Australian stock exchange ended today’s trading session at the lowest level since November 2020, pressured by mining and oil shares. The S&P/ASX 200 is down 0.64% in Sydney at 6,433.40.
*With information from Dow Jones Newswires
Source: CNN Brasil