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Hesitant attempt to react to Asian markets

The main stock indices of Asia tried to return to positive territory after the sharp losses on Monday, with the picture on the boards of the region, however, being divided.

In particular, in Japan the Nikkei after a strong fall of more than 2.5% yesterday in the wake of aggressive Fed policy hinted at by Jay Powell in his speech on Friday, today it pared some of the losses to move to 28,202 with a rise 1.15%. The broader index of the Japanese market moved at similar rates Topix with profits 1.2%.

A positive course was also followed by Kospi in South Korea on the rise 1% at 2,450 units, like o ASX 200 in Australia which strengthened more mildly against 0.5% moving to 6,998 units.

On the contrary, the mood in China’s markets was bearish. On the mainland the Shanghai Composite moved with small losses 0.35% at 3,228 units, as well as Shenzhen Component with a fall 0.4% at 11,970 units, while in the same mood and Hang Seng in Hong Kong he displayed -0.55% to 19,916 units.

The aftershocks of Powell’s speech, which outlined an aggressive stance by the Fed to fight inflation even if it has a negative impact on the nation’s economy, appear to still be dominating investors’ minds.

However, yesterday the indexes in the USA showed that they overcome to a certain extent the shock caused by the head of the federal bank, continuing in negative territory but with marginal losses.

“Investors appear to be still assessing the fallout from the Fed chairman’s hawkish speech, which not only dismissed the idea of ​​a shift to more dovish policy, but also emphasized the need to raise interest rates higher and remain tight in order to ease inflation,” said Rodrigo Catril, strategist at National Australia Bank, in a note today.

In other macro news for the day, Japan’s jobless rate was unchanged at an estimated 2.6% in July, holding steady for a third month in a row.

Honda Motor and LG Energy saw their shares move higher on the back of their $4.4 billion deal for a US battery factory.

Source: Capital

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