Asian stock markets are falling on Friday after slump in the tech industry on Wall Street yesterday which led other indices to a downward trajectory and while investors are assessing the impact of higher interest rates, the new jump in coronavirus cases and the continuing tensions between the US and China.
On Wednesday, the Federal Reserve announced that it has begun preparing to raise interest rates next year to tackle rising inflation. The European Central Bank and the Bank of England met on Thursday, with the latter raising its interest rates by 15 basis points, surprising analysts who expected it to remain unchanged. The ECB also presented its plans for the gradual downsizing of the emergency pandemic program, which expires in March 2022.
For its part, the Bank of Japan announced today that it will cut corporate bond and other securities markets, following other central banks that are gradually withdrawing pandemic-related emergency measures.
The central bank stressed that from April, it will reduce its participation in commercial securities and corporate bonds to 5 trillion. yen approximately ($ 43.97 billion) compared to the previous limit of 20 trillion. yen. The decision restores the level of participation in assets, to the point where it was at the beginning of the pandemic in 2020.
On the board, the Japanese Nikkei 225 index fell 1.8% to 28,545.68 points.
In Hong Kong the Hang Seng fell 1.1%, while in mainland China the Shanghai Composite lost 1.2%. Tensions in US-China relations have returned to the forefront, following the green light from the US Congress on legislation banning all imports from China’s Xinjiang region unless companies can prove their products are not the result. forced labor.
South Korea’s Kospi is up 0.4%, while in Australia the S & P / ASX 200 is up 0.1%.
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