Categories: world

Asian markets fall as Fed worries considering Xis's declaration of economic reforms

Asian stocks fell on Tuesday after a large number of Chinese President Xi Jinping, tracing losses on Wall Street as a trader for an interest rate rise of the Federal Reserve. Japanese Nikkei 225 index NIK, -1.82% was 1.6% lower and Kospi SEU, -0.43% in South Korea decreased 0.4%. Hong Kong Hang Seng HSI, -1 .14% forgot 0.9%. Shanghai Composite Index SHCOMP, -0.75% fell 1%, like Australia's S & P ASX 200 XJO, -1.22% . The shares were lower in Taiwan Y9999, -0.70% and Southeast Asia. Mix individual stocks, Japan's Fast Retailing Co. 9983, -1.61% slipped 1.7% and Korean chip maker SK Hynix 000660, -1.77% fell 2%, while Hong Kong listed Tencent Holdings 0700, -2.07% fell more than 2%. A number of Japanese industrial companies, such as Nippon Steel & Sumitomo Metal Corp. 5401, + 0.38% and Mitsubishi Materials 5711, + 0.48% increased more than 1% while CSPC Pharmeceutical 1093, + 1.04% was one of the few prisoners in Hong Kong. Investors had expected a number of Xi to celebrate the 40th anniversary of China's economic reforms. Some analysts hoped Xi would announce new commitments for a free market economy. "China's shares are parked in neutral as investors remain hopeful for a more proactive fiscal tone from the mainland regulators at the China Economic Work Conference," said Stephen Innes, head of trade between Asia and Pacific in Oanda, in a note to customers early Tuesday. In his speech in Beijing, Xi demanded China to "keep the course" on economic reforms…

Asian stocks fell on Tuesday after a large number of Chinese President Xi Jinping, tracing losses on Wall Street as a trader for an interest rate rise of the Federal Reserve.

Japanese Nikkei 225 index

NIK, -1.82%

was 1.6% lower and Kospi

SEU, -0.43%

in South Korea decreased 0.4%. Hong Kong Hang Seng

HSI, -1

.14%

forgot 0.9%. Shanghai Composite Index

SHCOMP, -0.75%

fell 1%, like Australia’s S & P ASX 200

XJO, -1.22%

. The shares were lower in Taiwan

Y9999, -0.70%

and Southeast Asia.

Mix individual stocks, Japan’s Fast Retailing Co.

9983, -1.61%

slipped 1.7% and Korean chip maker SK Hynix

000660, -1.77%

fell 2%, while Hong Kong listed Tencent Holdings

0700, -2.07%

fell more than 2%. A number of Japanese industrial companies, such as Nippon Steel & Sumitomo Metal Corp.

5401, + 0.38%

and Mitsubishi Materials

5711, + 0.48%

increased more than 1% while CSPC Pharmeceutical

1093, + 1.04%

was one of the few prisoners in Hong Kong.

Investors had expected a number of Xi to celebrate the 40th anniversary of China’s economic reforms. Some analysts hoped Xi would announce new commitments for a free market economy.

“China’s shares are parked in neutral as investors remain hopeful for a more proactive fiscal tone from the mainland regulators at the China Economic Work Conference,” said Stephen Innes, head of trade between Asia and Pacific in Oanda, in a note to customers early Tuesday.

In his speech in Beijing, Xi demanded China to “keep the course” on economic reforms and add a tough note that “no one is in a place to dictate to the Chinese people what should or should not be done” work on the Trump administration’s efforts to force a trade agreement.

Xi said that economic reforms will continue, if necessary. “We shall resolutely reform what should and can be reformed and make no change where it should and can not be reformed,” he said.

He added that China has reached a point where it must go on. “We will strengthen the development of the state economy while controlling the development of the non-state economy,” said Xi. “Opening gives progress while closing leads to backward direction.”

On Monday, US sales hit US stocks at their lowest levels over a year. Investors sold almost everything, from engineering and retail to stable companies with high dividends. Less than 40 of 500 layers consisting of S & P 500

SPX, -2.08%

ended the day higher. The benchmark index yielded 2.1 percent to 2,545.94, the lowest level since October 9, 2017. Dow Jones Industrial Average

DJIA, -2.11%

slipped 2.1% to 23.592.98 and the Nasdaq composite material

COMP, -2.27%

was down 2.3 percent at 6.753.73.

The federal open market committee commences a two-day meeting on Tuesday. It is expected to increase its short-term interest rate with a modest quarter, ranging from 2.25% to 2.5% a day later. Investors fear that more monetary tightening would weigh on US growth, and eventually the global economy, which is already expected to slow in 2019 due to trade tensions. President Donald Trump tweeted that it was “unbelievable” Fed considering another interest rate with “a very strong dollar and virtually no inflation”. The central bank forecasts three more interest rate hikes in 2019.

“Despite Donald Trump’s recent marriage, Fed appears to raise prices again on Wednesday with market participants keen to see if the economy can handle more political tightening given the expectations of slowing growth, saying ING economists Nicholas Mapa and Prakash Sakpal in a comment.

Oil prices fell into concern over overproduction and softening growth in China, which could hit demand. Benchmark US crude

CLF9, -1.70%

throw 49 cents to $ 49.39 per barrel in electronic commerce on the New York Mercantile Exchange. The contract dropped $ 1.32 to $ 49.88 in New York on Monday. Brent crude oil

LCOG9, -1.66%

used to award international oils gave up 59 cents to 59.02 dollars per barrel. It lost 67 cents to settle for $ 59.61 a barrel in London.

Dollar

USDJPY, -0.19%

weakened to 112.61 yen from 112.83 yen in late trading Monday.

Do you want news about Asia delivered to your inbox? Subscribe to MarketWatch’s free Asia daily newsletter. Sign up here.

Share
Published by
Faela