Stock indices of the Asia-Pacific region (APR) do not show a single dynamics during trading on Tuesday.
Equity markets are under pressure amid fears of persistently high inflation and the risk that central bank measures to contain it could trigger a recession in the global economy, writes MarketWatch.
Investors mainly focused on the actions of the US Federal Reserve System (FRS), which last week raised the federal funds rate by 75 basis points, to a range of 3-3.25% per annum, which is the maximum level since the financial crisis of 2008. At the same time, based on FRS estimates, by the end of 2022 the rate will reach 4.4% per annum.
Additional pressure on the equity markets in recent days has been exerted by volatility in the foreign exchange markets.
In addition, market participants are preparing for the start of a new reporting season, as the third quarter of this year is coming to an end. The results of the companies will allow them to better understand how the business copes with high inflation.
The Japanese Nikkei 225 index added 0.3% by 8:26 Moscow time.
The leaders of growth among the components of the indicator are shares of Hitachi Zosen Corp. (+4.1%), Konami Group Corp. (+4%) and Mitsui E&S Holdings Co. Ltd. (+2.8%).
The Chinese Shanghai Composite index rose 0.75% by 8:33 Moscow time, while the Hong Kong Hang Seng decreased by 0.9%, while earlier in the course of trading it fell to a minimum of more than 11 years.
The total profit of large Chinese industrial enterprises decreased by 2.1% in January-August 2022 compared to the same period a year earlier and amounted to 55.25 trillion yuan ($7.72 trillion), according to the State Bureau of Statistics (GSO) of the country.
Meanwhile, the People’s Bank of China (PBOC, the country’s central bank) accelerated the injection of liquidity into the financial system towards the end of the quarter. The regulator injected 175 billion yuan through open market operations, the NBK said in a statement.
Shares of Link Real Estate Investment Trust (-4.1%), Shenzhou International Group Holdings Ltd are among the drop leaders in Hong Kong. (-3.9%) and Budweiser Brewing Co. APAC Ltd. (-3.9%).
The South Korean index Kospi by 8:37 Moscow time fell by 1%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose in price by 0.1%, automaker Hyundai Motor – by 0.55%.
The Australian stock index S&P/ASX 200 rose by 0.25%.
Mining BHP Group rose 2.2%, Rio Tinto – 2.6%.
