Asian markets down on growth, worries about the virus
HONG KONG: Asian markets edged down on Friday as investors weighed in concerns over economic growth, virus outbreaks and risk aversion following dovish comments from the Federal Reserve chief.
Fed Chairman Jerome Powell reiterated the central bank’s plan to maintain stimulus initiatives until the economy fully recovered, while Treasury Secretary Janet Yellen warned inflation would remain high during the coming months.
“I think we’ll have several more months of rapid inflation yet, so I’m not saying this is a one-month phenomenon,” Yellen said in an interview on CNBC after markets closed. Americans.
However, she predicted that price increases would reach “normal levels” in the medium term.
Wall Street ended mixed up, with the Dow Jones closing slightly higher while the other two major indices retreated.
“US stocks fell after a second day of conciliatory testimony from Fed Chairman Powell provided new catalysts for buying risky assets,” said Edward Moya of Oanda.
“Risk aversion is firmly in place, possibly because the profit bar may have been set too high for banks and because reopening trade cannot pick up its pace. helped China’s economic growth to fall below expectations overnight, ”Moya added.
Asian stocks were mostly down with Tokyo down 1.1% as investors cautious of expanding viral infections and the Bank of Japan slashing its forecast for gross domestic product growth for the year In progress.
Hong Kong was down 0.2% ahead of an expected advisory from US President Joe Biden later Friday warning companies to do business in the southern Chinese city as Beijing tightens its grip.
“The situation in Hong Kong is deteriorating. And the Chinese government is failing to keep its commitment to do what it would do with Hong Kong,” Biden said Thursday at a press conference with German Chancellor Angela Merkel.
Shanghai lost 0.2% while Sydney, Seoul and Taipei also fell. Wellington was flat while Singapore, Bangkok and Jakarta rose.
Key figures around 03:00 GMT
Tokyo – Nikkei 225: DROP 1.1% to 27,974.72
Hong Kong – Hang Seng Index: DOWN 0.2% to 27,932.51
Shanghai – Composite: DOWN 0.2% to 3,558.40
New York – Dow: UP 0.2% to 34,987.02 (close)
London – FTSE 100: DOWN 1.1% to 7,012.02 (close)
Euro / dollar: LOWER to $ 1.1809 from $ 1.1813 at 9:00 p.m. GMT Thursday
Pound / dollar: DOWN to $ 1.3829 from $ 1.3832
Euro / pound: DROP to 85.39 against 85.41 pence
Dollar / yen: up to 109.99 from 109.82 yen
North Sea Brent: DROP 0.1% to $ 73.42 per barrel
West Texas Intermediate: down 0.04% to $ 71.62 per barrel AFP