### Summary
Asian stocks were mixed as traders awaited the Federal Reserve's summer conference to determine if more interest rate hikes are necessary to deal with inflation.
### Facts
- 📉 Shanghai and Hong Kong stocks retreated, while Tokyo and Seoul stocks advanced.
- 📉 The Hang Seng in Hong Kong lost 1.1%.
- 📈 The Nikkei 225 in Tokyo advanced 0.6%.
- 📈 The Kospi in Seoul gained 0.6%.
- 📊 The S&P 500 index ended the week lower by 0.1%.
- 💵 Some investors are shifting money to bonds as higher interest rates make their payout bigger and less risky.
- 💹 Tech and other high-growth stocks are some of the biggest losers due to higher rates.
- 📉 Ross Stores jumped 5% after reporting stronger-than-expected results, while Estee Lauder fell 3.3% despite reporting stronger profit and revenue than expected.
- ⛽ Benchmark U.S. crude gained 73 cents to $81.39 per barrel, while Brent crude reached $85.55 per barrel.
- 💲 The dollar slightly edged up to 145.35 yen, while the euro rose to $1.0882.
(Source: AP News)
The US dollar weakened slightly against major peers as traders awaited a speech from Federal Reserve Chair Jerome Powell, while the yen pulled away from a nine-month low and China's yuan briefly rose following attempts to bolster the currency.
The US dollar remains strong against major peers and the yen, as Treasury yields rise amid expectations of high US interest rates for a longer period, while China's central bank sets a stronger-than-expected daily midpoint for the yuan to counter mounting pressure on the currency.
Asian markets are expected to follow the global trend of weakness in stocks, a buoyant dollar, elevated bond yields, and souring investor sentiment, with no major catalysts to change the current market condition.
Japan is unlikely to intervene in the market unless the yen weakens past 150 to the dollar and becomes a major political issue, according to a former central bank official, who also noted that the benefits of a weak yen are becoming clearer due to the re-opening of Japan's borders.
Japanese and Chinese central banks have significantly reduced their holdings of US Treasury bonds, making it less likely that their interventions in the foreign exchange market would disrupt global markets or strike fear into bond investors.
Asia stocks fall as weak economic data in China and Europe raise concerns over global growth, while the dollar strengthens as investors assess the outlook for U.S. interest rates.
Tokyo stocks rise as a cheaper yen supports the market, despite falls on Wall Street and concerns about another US Federal Reserve interest rate hike.
The yen strengthened and government bonds slumped as traders reacted to potentially hawkish comments from Bank of Japan Governor Kazuo Ueda on the negative interest rate policy, causing Japanese bank shares to jump and the benchmark bond yield to rise.
The Bank of Japan has signaled a possible early end to its easy money stance, with the central bank considering interest rate hikes and an early end to its bond-buying policy, which caught markets off guard and caused the yen to surge and Japanese government bond yields to reach a 9-year high.
The Japanese yen strengthens against the US dollar as Bank of Japan Governor Kazuo Ueda hints at a potential shift away from negative interest rates.
The Bank of Japan's potential shift away from negative interest rate policy has ignited the Japanese Government Bond and currency markets, with the yen seeing its biggest rise in two months and the 10-year JGB yield reaching its highest point in almost a decade.
Japan's ruling party lawmaker Hiroshige Seko supports maintaining an ultra-loose monetary policy, following comments by the Bank of Japan governor that caused the yen and bond yields to rise.
Asian stock markets mostly declined, with Japan's Nikkei 225 leading losses, as investors were concerned about upcoming central bank decisions and the possibility of the Bank of Japan ending its negative interest-rate policy.
The Bank of Japan is expected to maintain ultra-low interest rates and reassure markets that monetary stimulus will continue amidst China's economic struggles and the global impact of US interest rates.
The Japanese yen remains weak against the U.S. dollar due to high U.S. Treasury yields and anticipation of the Bank of Japan maintaining its current monetary policies, while the dollar is boosted by the prospect of higher U.S. interest rates.
The Bank of Japan has decided to maintain its ultra-loose policy and keep interest rates unchanged due to uncertainties in domestic and global economic growth.
Asia-Pacific markets fell as the Bank of Japan kept rates unchanged and noted a "moderate recovery" in the economy, while Japan's private sector activity expanded at its slowest pace since February and the country's August inflation rate remained above the BOJ's target for the 17th straight month.
The yen weakened against the dollar as the Bank of Japan announced it would maintain its accommodative monetary policy, with little indication of rolling it back.
Most Asian stocks retreated as markets absorbed the outlook for higher interest rates and concerns over a property market crisis in China, while Japanese shares rose on the back of the Bank of Japan's dovish stance.
Asian shares fall due to concerns over interest rates, inflation data, and China's economy, while bond investors face the impact of the US Federal Reserve's more hawkish rate projections.
Investors are concerned about possible intervention as the yen approaches 150 per dollar, but the Bank of Japan may find it difficult to justify and achieve currency support due to the hesitation in exiting an ultra-easy monetary policy and the commitment to market-determined exchange rates.
Japanese stocks soar as the yen reaches its lowest point in nearly a year and the US avoids a government shutdown, while other equity markets in the region remain mixed.
The Bank of Japan is considering the eventual end of its ultra-loose monetary policy, with some policymakers discussing the conditions and timing of a future exit, according to a summary of opinions from their September meeting, leading to a rise in government bond yields.
The dollar rose due to expectations of higher U.S. interest rates, while the yen reached a one-year low, leading to concerns about intervention by Japanese authorities; the euro and pound also fell, while the U.S. Congress passed a funding bill to avoid a government shutdown.
Asian stocks and sovereign bonds declined following hawkish signals from the Federal Reserve, raising concerns of further interest rate hikes.
The yen briefly fell below 150 against the dollar despite efforts by the Japanese government to prevent the decline, as investors anticipate the U.S. Federal Reserve to maintain high interest rates.
The dollar weakened and global equities dipped as investors grappled with U.S. unemployment data suggesting a tight labor market and the Federal Reserve's commitment to higher interest rates, while European stocks rebounded from losses.
Asian shares mostly fell amid concerns about the U.S. banking system and Chinese economic growth, with Japan's Nikkei 225 down 0.2% and Hong Kong's Hang Seng down 0.4%, while China's export data showed the sharpest decline in three years. Bank stocks in the U.S. also fell after Moody's cut credit ratings for 10 smaller and midsized banks, citing concerns about their financial strength in light of higher interest rates and the work-from-home trend. The Federal Reserve's efforts to combat inflation by raising interest rates have led to a slowdown in the economy and hit banks hard.
Japan's central bank is under pressure to reconsider its ultraloose monetary policy due to factors such as a weak yen, post-pandemic inflation, and the Russia-Ukraine war.
Asian stocks retreat as concerns over the Israel-Hamas war and fears of rising U.S. interest rates weigh on risk sentiment, with Japan's Nikkei index leading losses.
The U.S. stock markets decreased due to rising Treasury yields and investor evaluations of corporate earnings, while Asian markets, including Japan's Nikkei 225 and Australia's S&P/ASX 200, also experienced declines; the European STOXX 600 index and Germany's DAX also decreased, while crude oil, gold, and silver prices fell.
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