Baca berita tanpa iklan. Gabung
May 6, 2022, 04.27 PM

HONG KONG, — Asian equities tumbled Friday, May 6 following a rout on Wall Street fueled by worries over rising interest rates and surging inflation, while the pound extended losses the day after taking a beating on fears of a UK recession.

Global markets have been battered this year by a series of crises including surging inflation, rising interest rates, China’s economic slowdown, and the war in Ukraine.

There was some relief after the Federal Reserve on Wednesday, May 4 lifted borrowing costs 50 basis points -- the most since 2000 -- but suggested a feared 75-point lift was not on the agenda for now.

However, US traders ran for the hills Thursday, May 5 as they contemplated a period of fierce monetary tightening by the US central bank as it struggles to contain inflation running at a more than 40-year high.

Also readDeveloping Countries Need Financial Support in Energy Transition, Says Jokowi

The Nasdaq -- dominated by tech firms particularly sensitive to higher rates -- lost 5 percent, while the Dow and S&P 500 fell more than 3 percent.

“Valuations become even more sensitive, very sensitive when rates are going up and that is what we are experiencing,” Kristina Hooper, at Invesco, told Bloomberg Television.

“It’s just getting exacerbated as we get into the thick of monetary-policy tightening in the US.”

That sell-off filtered through to Asia, where Hong Kong tanked more than 3 percent as tech firms took a hit. Meanwhile, the European Chamber of Commerce in the city called the finance hub’s stringent pandemic travel restrictions and frequent flight bans a “nightmare” for businesses.

Also readIndonesia Eyeing Singapore as Electricity Export Market

The remarks come a week after the Australian Chamber of Commerce recommended that Hong Kong follow the lead of Singapore or Japan by lowering quarantine requirements for business travelers.

Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, and Manila also tanked. However, Tokyo ended the morning slightly higher.

Adding to the selling pressure was ongoing weakness in China’s economy caused by strict lockdowns and other containment measures as officials struggle to bring a Covid flare-up under control by sticking to a zero-Covid policy.

Various districts in Beijing told residents on Thursday to work from home, while Shanghai, the biggest city in the country, remains essentially shut down.

Also read: China Uses Money, Diplomacy to Push Back Against US in Southeast Asia

On currency markets, the pound continued to struggle a day after plunging more than 2 percent in reaction to the Bank of England’s updated forecast that warned annual inflation would top 10 percent and the economy would contract later this year.

Crude rose after key oil producers led by Saudi Arabia and Russia refused to lift output more than their planned marginal increase as they weighed tight supply concerns caused by the Ukraine war.

“OPEC’s inability to ramp up production when desperately needed by the market is compounding an already dangerous supply deficit,” said Stephen Innes, of SPI Asset Management.

“This means geopolitical tensions will remain high, and while there are some demand-side risks at the moment, it seems likely that the threat of supply disruption will be the dominant driver at this time,” he said.

Source: Agence France-Presse

Dapatkan update berita pilihan dan breaking news setiap hari dari Mari bergabung di Grup Telegram " News Update", caranya klik link, kemudian join. Anda harus install aplikasi Telegram terlebih dulu di ponsel.

Baca berita tanpa iklan. Gabung
Source VOA News

Baca berita tanpa iklan. Gabung
Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

April 14, 2023, 12.38 PM

Indonesia Detects New Covid Arcturus Variant

April 5, 2023, 05.16 PM

ASEAN to Finalize Agreement on EV Ecosystem

Baca berita tanpa iklan. Gabung
Baca berita tanpa iklan. Gabung


Baca berita tanpa iklan. Gabung
Baca berita tanpa iklan. Gabung
Close Ads
Baca berita tanpa iklan. Gabung