Asian stocks are falling, investors are waiting for Japan, political decisions by the US central bank
From Gina Lee
Investing.com – Asia Pacific stocks were largely down Tuesday morning as investors cautioned central bank policy decisions in Japan and the US
Japan was down 0.16% to 10:19 p.m. ET (2:19 p.m. GMT), with the Bank of Japan scheduled to close later in the day.
South Korea was down 0.18% after data released earlier in the day said the country had grown 1.6% quarter over quarter in the first quarter of 2021. Investing.com’s forecasts had forecast growth of 1% while GDP grew 1.2% in the fourth quarter of 2020.
In Australia the value fell by 0.50%
Hong Kong was down 0.09%.
China fell 0.38% while that rose 0.11%.
Better-than-expected corporate earnings also gave US stocks a boost in the previous session. However, shares of Tesla (NASDAQ 🙂 Inc. fell after the close of trading in the US as the company’s multi-year outlook for shipments growth remained unchanged, despite better-than-expected earnings.
The benchmark hovered near its 50-day moving average, despite being below the highs recorded in March 2021.
The steadily increasing number of emerging economies such as India and Brazil also remains a cause for concern. Although some investors could take profits from stocks, sentiment remains positive overall thanks to rising COVID-19 vaccination rates in many countries.
“There are two reasons to remain positive on stocks and commodities. The global economy should continue to recover, and many advanced economies are poised to reopen due to advances in vaccination,” said Sumitomo Mitsui (NYSE 🙂 Asset Management Co. -Macro strategist Masayuki Kichikawa told Reuters.
The US will release its own on Thursday, which will show that growth picked up in the first quarter, aided by government incentives. Biden will also deliver his first address as President at a joint congressional session on Wednesday.
However, these factors are unlikely to change the Fed’s current cautious stance as it takes its stance on the same day. Investors generally expect the central bank to keep policy rates and asset purchases unchanged.
Other investors also remained optimistic ahead of the Fed’s decision.
“I’m a cop,” Kramer Capital Research CIO Hilary Kramer told Bloomberg. Fed Chairman Jerome Powell “will make sure he keeps rates low, he will lag behind rather than try to stay ahead of inflation,” she added.
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