Mixed signs and nervousness in Asia, waiting … Fed

Major stock indices in the Asia-Pacific region are falling on Monday, after the worst week on Wall Street since the start of the pandemic in 2020, but also in view of the upcoming meeting of the Fed monetary policy committee.

On the board, the Japanese Nikkei gained 0.24%, to 27,588.37 points, with the South Korean KOSPI to suffer losses of 1.49%, while in Hong Kong o Hang Seng “loses” 1.25%. In mainland China, the Shanghai increased marginally by 0.04%, with Shenzen to gain 0.38%. In Taiwan, the Taiwan Weighted closed with an increase of 0.50%, while in Australia the S&P/ASX 200 closed with losses.

Investors are worried about how aggressive the US Federal Reserve will move in tightening its monetary policy in a bid to curb galloping inflation.

Historically low interest rates, combined with quantitative easing (QE), have given markets a significant boost and helped absorb the economic shock of the pandemic shock since early 2020, leading to recovery.

“The FOMC (Federal Open Market Committee) meeting dominates the macroeconomic calendar this week and will likely continue to keep investment risk levels low, as the quantitative easing program is expected to end immediately and an interest rate hike will be announced.” , ING economists Nicholas Mapa and Robert Carnell point out in a comment.

Many economic analysts believe that the country’s central bank will have to move faster to hold prices, with the US consumer price index rising 7% year-on-year in December to a four-decade high.

Rising costs have heightened concerns that consumers will start cutting spending as the coronavirus’s Micron mutation makes it harder and slows the recovery of economies internationally.