TOKYO – Asian equities were mixed on Monday as sentiment was shaken by the US Federal Reserve’s announcement that it would end emergency measures implemented last year to help the financial industry cope with the pandemic.
Japan NIkkei 225 NIK,
fell by 1.8% and the Hong Kong HSI Hang Seng index,
reduced by 0.2% lower. Shanghai SHCOMP Composite,
gained 0.9% and Kospi from South Korea 180721,
0.1% higher. S & P / ASX 200 XJO from Australia,
advanced 0.4%. Stocks fell in Indonesia JAKIDX,
but won in Singapore STI,
and Taiwan Y9999,
When trading in Tokyo, major stocks fell almost generally, including carmakers such as Toyota Motor Corp. 7203,
and Honda Motor Co. 7267,
whose earnings get a boost from a healthy US economy.
“Asian markets saw a mixed start to the week, and rising bond yields once again influenced sentiment. Seeing the influence between rising bond yields and improving the economic recovery outlook could remain for the region until the end of March, ”said Jingyi Pan, senior market strategist at IG in Singapore.
Last week’s Fed measure will restore some of the capital requirements for large banks that were suspended in the first months of the viral outbreak to give banks flexibility. The banking industry hoped that these measures would be extended.
But most Fed policies aimed at supporting the recovery from the pandemic remain intact.
Concerns about the coronavirus pandemic remain in the region, where vaccine launches in some countries, such as Japan and Thailand, are progressing slowly compared to the US or Europe. However, in Japan, a “state of emergency” is being raised this week in the Tokyo area,
Wall Street closed down much of last week, with all benchmarks ending in red for the week. S&P 500 SPX,
lost 0.1% to 3,913.10. Dow Jones Industrial Average DJIA,
decreased by 0.7% to 32,627.97, down from financial companies. Nasdaq Composite COMP
increased by 0.8% to 13,215.24.
As interest rates rose, more expensive stocks, such as technology companies, fell. The prospect of rising interest rates as bond yields cause some investors to worry about slowing economic growth. There is also concern that rising bond yields could be a harbinger of inflation.
In energy trading, reference to American crude oil CLJ21,
fell 46 cents to $ 60.96 a barrel. Brent gross BRNK21,
the international standard lost 19 cents to $ 64.34 a barrel.
In foreign exchange, the US dollar USDJPY,
rose to 108.76 Japanese yen from 198.64 yen.