Baca berita tanpa iklan. Gabung Kompas.com+
Tentukan Pilihanmu
0 hari menuju
Pemilu 2024
June 24, 2022, 12.00 PM

HONG KONG, KOMPAS.com - Stocks rose in Asia on Friday, June 24, following another rally on Wall Street as investors try to process central bank moves to fight soaring inflation with the growing possibility that those measures will induce a recession.

Global markets have been thrown into turmoil for months by a perfect storm of crises that have left observers predicting a sharp contraction, including the Ukraine war, China's lockdown-induced economic troubles, supply chain snarls and spiking energy costs.

Expectations that the Federal Reserve and other central banks will have to keep lifting rates have left many traders fretting that the pain could go on for some time, with sovereign bond yields -- key gauges to future rates -- continuing to climb.

This week Fed boss Jerome Powell told lawmakers a recession was "certainly a possibility" and suggested officials were ready to press on with big rate hikes, following a three-quarter point lift this month.

Also read: Indonesia’s Trade Balance Surplus Maintains Economic Resilience, Says Central Bank

However, analysts said speculation that a recession is on the way has helped push yields down in recent days and led traders to scale back their expectations for the length of rate hikes.

Demand concerns have also helped send oil prices -- a key driver of inflation -- lower with both main contracts around 15 percent over the past week.

Added to the mix this week are comments from President Xi Jinping suggesting an end to China's tech crackdown as well as possible new measures aimed at boosting the economy.

"As we have been saying for some time now, for stocks to return to any semblance of form, it would likely require an unlikely upbeat mix of a seamless China growth recovery, a top in US bond yields, and much softer oil prices," said Stephen Innes at SPI Asset Management.

Also readIndonesia’s Economy Grows 5.01 Percent in First Quarter

Baca berita tanpa iklan. Gabung Kompas.com+
Page:
Source AFP


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

More Headlines

Baca berita tanpa iklan. Gabung Kompas.com+
Baca berita tanpa iklan. Gabung Kompas.com+
Baca berita tanpa iklan. Gabung Kompas.com+
Baca berita tanpa iklan. Gabung Kompas.com+
Close Ads
Oke
Baca berita tanpa iklan. Gabung Kompas.com+