Tokyo (Reuters) – Risk sentiment rises on Friday as inflation rises after global growth peaks, Asian equities fall sharply on Wall Street, and bonds Repulsed. Japan’s Nikkei Stock Average fell 1.86%, while the broader Tokyo Stock Price Index fell 1.95%. Australia’s stock price fell 2.05% and South Korea’s Kospi fell 1.51%. The MSCI Index for Asia Pacific equities fell 1.07%.
The Chinese market will be closed for a week starting Friday due to the Golden Week holidays. Rob Kernel, Head of Asia Pacific Area Studies at ING in Singapore, said:
“You don’t need to know right now whether this is actually embedded and will cause problems over the years to come. It’s scary enough to justify what you see in the market.”US equity futures show that the S & P 500 fell 0.51% after the index fell 1.19% overnight.
Nasdaq futures also showed a 0.49% setback, adding to Thursday’s 0.43% loss. Benchmark 10-year Treasury bonds continued to rise in Tokyo trading, with yields declining to 1.48%, the lowest since September 28. The dollar index, which measures currencies against six major rivals, fell below its year-long high of 94.504 on Thursday and finally changed trading at 94.326.
Federal Reserve Board Chair Jerome Powell said on Wednesday that resolving the “tension” between high inflation and high unemployment was the most urgent issue for the Federal Reserve Board, stable prices and full employment. He acknowledged a potential conflict between the Fed’s two goals of employment.
China is of particular concern to investors, hit by regulations in the technology and real estate sectors, and is currently addressing a power shortage that could push up energy prices globally. Crude prices continued to fall on Friday after Brent surpassed $ 80 a barrel for the first time in three years at the beginning of the week.
Brent crude oil futures were almost flat at $ 78.32 on Thursday, while US crude oil futures were almost unchanged at $ 75.07.Gold, a safe haven for inflation hedging, fell 0.1% to $ 1,755.35 an ounce, the highest since March, following a 1.77% surge on Thursday. Asian stocks widen global decline as inflation concerns bite. Source.