Asian Stocks Down Over Disappointing Fed Minutes and Rising U.S.-China Tensions By

Asian Stocks Down After Grim COVID-19 Numbers Dampen Hopes of

© Reuters.

By Gina Lee – Asian stocks were down on Thursday, coming under pressure as the lack of details in the U.S. Federal Reserve’s latest minutes and simmering U.S.-China tensions damped investor sentiment.

The minutes, released on Wednesday, caused U.S. markets to pause a rally as investors digested their lack of guidance. Although the minutes stated, “with regard to the outlook for monetary policy beyond this meeting, a number of participants noted that providing greater clarity regarding the likely path of the target range for the federal funds rate would be appropriate at some point,” no further details were given.

But the pace of U.S. economic recovery is more likely to be worrying officials at present, “given the stalemate on fiscal stimulus in Washington,” Marvin Loh, senior global macro strategist at State Street (NYSE:), told Bloomberg, referring to the stalemate in the U.S. Congress over the latest stimulus measures.

“The Fed will continue to do what it can, but it does feel that fiscal is as important in the recovery process as monetary, and their tools to get funds to Main Street remain constrained,” he added.

Investors will be seeing whether the Fed will provide any further guidance at either the Jackson Hole symposium, due to take place from August 27-28, or at its next meeting in September.

The U.S. threw the latest salvo into mounting tensions with China on Wednesday, when it suspended its extradition treaty and reciprocal tax treatment agreement with Hong Kong.

The suspended agreements cover “the surrender of fugitive offenders, the transfer of sentenced persons, and reciprocal tax exemptions on income derived from the international operation of ships,” State Department spokeswoman Morgan Ortagus said.

Other potential U.S. moves include sanctions against senior management at some of the city’s banks and further limits on the technology that Hong Kong companies can purchase from the U.S.

Hong Kong’s slid 2.14% by 10:38 PM ET (3:38 AM GMT).

China’s fell 1.18% and the was down 0.62%. The People’s Bank of China kept its unchanged, with the one-year loan prime rate at 3.85%, and the five-year loan prime rate at 4.65%.

Japan’s was down 1.12% and South Korea’s slid 2.75%. Korea reported 288 cases as of midnight on Wednesday, with the country struggling to curb an outbreak in Seoul.

Down Under, the was down 1.06%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.