Asian markets muted as traders warily eye more Fed rate hikes

After Wall Street closed last week lower and China tightened anti-virus regulations, Asian stock markets fell on Monday.

BEIJING

While the Hang Seng in Hong Kong fell 1.6%, the Nikkei 225 in Tokyo lost 0.1%. After the Chinese government tightened limitations on movement in the southern economic hub of Shenzhen as a result of virus outbreaks, the Shanghai Composite Index increased by 0.1%.

The benchmark S&P 500 index on Wall Street declined 1.1% on Friday as a result of U.S. government statistics showing a slowdown in hiring in August. In order to lower inflation, which is at a four-decade high, more interest rate hikes may be required, according to forecasts, who noted that the number of jobs added was still significant.

The Fed is being closely watched by traders after head Jerome Powell stated on August 26 that high interest rates are necessary to quell demand for price increases. That shattered hopes that the Fed may change course in response to indications that U.S. economic activity is slowing.

This year, the Federal Reserve hiked interest rates four times, twice by 0.75 percentage points, which is treble the usual increase. Rate increases by central banks in Europe and Asia have increased concerns that they could halt global economic development.

After the Labor Department announced that the U.S. economy generated 315,000 jobs in August, the Dow Jones Industrial Average on Wall Street also decreased 1.1% on Friday. Despite being significantly lower than July's 526,000, average hourly compensation increased by an abnormally large 5.2% compared to a year earlier.

1.3% was taken off the Nasdaq composite. The gains earned by the American market in July and August, when investors believed the Fed would loosen up, have largely been lost. According to CME Group, traders anticipate a further 0.75 percentage point rate increase at the Fed meeting this month.

1.3% was taken off the Nasdaq composite. The gains earned by the American market in July and August, when investors believed the Fed would loosen up, have largely been lost. According to CME Group, traders anticipate a further 0.75 percentage point rate increase at the Fed meeting this month.

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