Asian Stock Market starts week with collapse of attention to China’s incentives
2023.02.20 00:47
Asian Stock Market starts week with collapse of attention to China’s incentives
By Kristina Sobol
Budrigannews.com – On Monday, most Asian stocks stayed within a narrow range as markets awaited additional monetary policy cues from a series of events this week at the Federal Reserve. On the other hand, Chinese stocks rose sharply on the possibility that the government will spend more on stimulus.
Following the People’s Bank’s historic lows, China’s and indexes each gained around 1%. Even though some traders had hoped for a cut, Beijing still showed that it wants to keep monetary policy as accommodative as possible to help the economy grow.
The and indexes in Hong Kong and Taiwan saw gains of 0.7 percent and 0.4 percent, respectively, as gains in China spread. Additionally, China’s move comes shortly after the government reiterated its plans to increase stimulus measures in an effort to encourage economic recovery.
Even though China eased most of its COVID restrictions earlier this year, there have been mixed signals from outside the country, even though the country’s economic recovery bodes well for Asian markets as a whole.
On Monday, traders hunkered down ahead of a slew of Fed speakers due this week, ensuring that the majority of other Asian markets remained within a narrow range. The Fed’s February meeting is also being watched, as the central bank is expected to stick to its hawkish stance.
Over the course of the past week, data showing higher-than-anticipated inflation in the United States had a significant impact on Asian markets. This was due to traders’ concerns regarding additional interest rate hikes that could drive capital out of the region.
while Japan’s index traded sideways, stocks suffered the most losses across Southeast Asia on Monday, losing 0.3 percent each.
After North Korea fired two ballistic missiles into the sea close to Japan’s west coast, fears of escalating tensions on the Korean Peninsula also sour sentiment toward Asian markets.
Nonetheless, given that South Korea stands to benefit from any Chinese economic recovery, its rose 0.3 percent.
India’s and indexes gained a little, but any upside was limited by concerns about rising inflation in the country. The Reserve Bank recently made it clear that it will keep tightening policy to lower inflation, which is bad news for stocks in the country.
