Asian stocks stop recent losses and focus on CenBank’s tapering

Hong Kong — Friday Asian equities rebounded after a two-day loss, but remain as global investors are working on how best to interpret the central bank’s cautious move to end the stimulus. It was a nervous mood.

MSCI’s widest non-Japanese Asia-Pacific stock index rose 0.47% in early trading, but is still down about 0.8% compared to last week’s closing price, in line with global trends.

Japan’s Nikkei Stock Average rose 0.25% and US equity futures S & P 500 e-minis were flat.

After aluminum prices hit a high for the first time in years, mining stocks rose 0.4% in Australia and 0.5% in China’s top stocks.

But Hong Kong drove the rise as local benchmarks rebounded by 1.5% and fell by more than 2% the day before China’s tech stocks were hit again after authorities called on game companies. .. However, traders are still careful not to buy too many dips.

“At some point, investors will say this is actually the right price, it won’t be zero,” said China’s technical name, head of Asian equities and senior at SEI. Portfolio manager John Lau said.

“Most investors will wait for the dust to settle and see if there is enough clarity before taking action. At this point, it’s very difficult.”

Asia’s rise was seen following Thursday’s volatile Thursday, when the market was struggling to get a clear direction.

The European Central Bank’s reaction to delaying emergency bond purchases during the COVID-19 pandemic in the next quarter was constrained by refraining from details of the ECB’s plans to end the € 1.85 trillion pandemic emergency purchase program. I did.

“Risk sentiment reversed in an overnight session, initially responding positively to ECB meetings and evidence of continued strength in the US labor market, but US stocks ended up in the red. Perhaps reflects concerns about the timing of the Central Bank’s tapering and the ongoing Delta’s predicament, “said an ANZ analyst.

The Dow Jones Industrial Average fell 0.43 percent, the S & P 500 fell 0.46 percent, and the Nasdaq Composite fell 0.25 percent.

Investors usually interpret better employment as a sign that the Federal Reserve is unlikely to delay the reduction of large asset purchases that have supported stock prices in recent months.

In addition, Federal Reserve Governor Michelle Bowman said weak employment reports in August are likely not to abandon the central bank’s plan to cut $ 120 billion in monthly bond purchases later this year. Added her voice to the increase in.

In the currency market, the euro was flat at $ 1.1820 in Asian time after helping to stop losses for several days as the ECB’s announcement fell below the monthly high set at the end of last week.

The dollar also changed little against its peers’ baskets, but rose nearly 0.5 percent weekly on the course.

Benchmark 10-year Treasury yields have risen up to 1.307% compared to the US closing price of 1.3%.

US crude oil fell 0.1% to $ 68 a barrel. Brent crude fell 0.15% to $ 71.34 a barrel.

Arun John