Asian Stocks Up, but Slowdown in Chinese Economic Recovery Continues By

© Reuters.

By Gina Lee – Asia Pacific stocks were mostly up on Monday morning. However, signaled a further slowdown in the country’s economic recovery, and the high probability of U.S. Federal Reserve interest-rate increases also weighed on investor sentiment.

Japan’s rose 0.9% by 9:11 PM ET (2:11 AM GMT). December’s contracted 1% month-on-month, while grew 1.4% year-on-year.

In Australia, the was down 0.26%, with growing 0.8% month-on-month in December.

Hong Kong’s was up 0.35% and will close early at 11 PM ET. Chinese and South Korean markets are closed for a holiday.

Chinese data released on Sunday showed that the was 50.1, and the was 51.1, in January. Both indexes were above the 50-mark indicating growth, but manufacturing output fell, and consumer spending was hit by COVID-19 outbreaks in the country.

The was at 49.1. 

The Fed’s turn towards a more hawkish policy in its latest policy decision handed down during the previous week, alongside uneven corporate earnings, contributed to the recent market volatility.

Atlanta Fed President Raphael Bostic said that a 50 basis-point interest rate hike, or hikes at each policy meeting in 2022, is possible. But he added three quarter-point hikes starting March 2022 is the most likely scenario. San Francisco Fed President Mary Daly will speak later in the day.

Policy decisions from the and are due on Thursday, while the hands down its policy decision on Tuesday.

Companies including Alphabet Inc. (NASDAQ:), Inc. (NASDAQ:), Exxon Mobil Corp. (NYSE:), Ford Motor Co . (NYSE:), Meta Platforms Inc. (NASDAQ:), Qualcomm Inc . (NASDAQ:), Sony Group Corp. (NYSE:), Spotify Technology SA (NYSE:), and UBS Group AG (NYSE:) will also release their earnings throughout the week. U.S. data including the , is due on Thursday.

Some investors remained cautiously positive that global stocks will see less volatility, even if only temporarily, after tumbling more than 6% in January.

The equity selloff “marks a long-overdue correction rather than the start of a bear market,” BCA Research Inc. analysts including Peter Berezin and Melanie Kermadjian said in a note.

“Stocks often suffer a period of indigestion when bond yields rise suddenly, but usually bounce back as long as yields do not move into economically restrictive territory,” the note added.

Other investors also took a positive view, with various speculative bubbles deflating without significantly affecting financial-market functioning or adversely impacting the economy, Yardeni Research president Ed Yardeni said in a note.

This reduces “the chances of a recession and a bear market in the ,” the note added.

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.


Leave a Reply

Your email address will not be published.

GIPHY App Key not set. Please check settings