The main stock indices of the Asia-Pacific region are moving with mixed signals, as investors continue to follow the developments around the situation regarding Covid in China, but also the course of the Japanese yen.
US inflation data for March are also eagerly awaited in order to determine the tightening of monetary policy tightening by the Federal Reserve in the coming months.
Chinese markets are recovering from Monday’s dive and seem to be partially succeeding.
On the board, the Japanese Nikkei fell by 1.81%, to 26,334.98 points, with the South Korean KOSPI to record a drop of 0.98%, while in Hong Kong, the Hang Seng increased by 1.24%. In mainland China, Shanghai gains 1.39%, with Shenzen to record an increase of 1.30%. In Taiwan, the Taiwan Weighted lost 0.34%, while in Australia o S & P / ASX 200 decreased by 0.42%.
In Hong Kong, shares of Tencent and NetEase rose 3.68% and 4.92% respectively, after Chinese regulators approved new games, after a “freeze” of the relevant process for months.
The World Health Organization (WHO) said Monday it was monitoring the development of the coronavirus pandemic in mainland China, where authorities are battling the biggest outbreak since 2020.
Most of the cases are located in Shanghai, which has been in lockdown for about a week, as the restrictive measures taken earlier did not work. The US State Department has instructed all non-essential US government personnel and their Shanghai-based family members to leave the city.
The Japanese yen, on the other hand, is trading at 125.45 yen per dollar, after yesterday’s weakening below the 125 level against the US currency.
“Given what we have seen so far, with the dollar strengthening from 115 to 125 yen, this is a very strong support in a very short period of time,” said Chang Wei Liang, forex and credit strategist at DBS Bank.
He believes that the Japanese authorities, at least declaratively, will try to calm the market and not let the devaluation of the currency get out of control.
In terms of US inflation for March on an annual basis, economic analysts estimate that it will reach 8.4%, the highest level since December 1981.
According to Carol Kong of the Commonwealth Bank of Australia, these prices will lead the Fed Monetary Policy Committee to an aggressive increase in interest rates in May and June by 50 basis points each, or a total of 1% compared to today. flat.
Source: Capital
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