Mixed signs in Asia – Over 3% dip in Australia

Asian stock markets are moving with mixed signs on Tuesday, after yesterday’s sell-off at the Wall, with the S&P 500 slipping into a bear market.

In this climate, the Nikkei 225 in Japan fell 1.32% with Softbank Group shares slipping more than 3%.

At the same time, in Hong Kong, the Hang Seng gains 0.16% with Alibaba’s share plunging more than 4%.

In mainland China, Shanghai Composite adds 0.44% while o Shenzhen Component loses 1.25%. In South Korea, the Kospi declines 0.46%.

The biggest losses, however, were recorded by S & P / ASX 200 in Australia, which closed with a fall of 3.55%.

Cryptocurrencies also recorded significant losses on Tuesday, with Bitcoin to fall below $ 21,000 for a moment before recovering slightly.

Yesterday’s losses on Wall Street came as investors prepared for a possible faster rate hike by the US Federal Reserve (Fed) following Friday’s inflation data, which was warmer than expected.

Fed officials are now considering raising interest rates by 75 basis points later this week, according to CNBC’s Steve Liesman. This is a bigger increase than the 50 basis points that many analysts expected. The Wall Street Journal was the first to break the news.

“I think the simple way to explain it is that if the Fed does not bring inflation under control now, it could have inflation for 10 years and go back to the economic conditions of the 1970s,” said Eric Robertsen. Standard Chartered Bank research on CNBC’s “Squawk Box Asia” show.

Stock markets are now beginning to “reconcile” with this outlook, Robertsen added.

“Risk assets have plummeted as the risk of recession rises as bond yields rise and the Fed expects a Volcker-type action,” said Tapas Strickland, chief financial officer of National Australia Bank.

In the early 1980s, former Fed chief Paul Volcker helped curb inflation by raising interest rates by close to 20% and sending the economy into recession.