Asian stocks fall, investors digest high-anticipated US inflation, Jenna Lee, Investing.com - Shares in the Asia-Pacific region fell sharply on Thursday morning, with the fastest U.S. inflation in more than 30 years, in the hope that the Federal Reserve will raise interest rates in early March 2022.
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| Asian stocks fall, investors digest high-anticipated US inflation |
In Japan, the Nikkei 225 fell 0.96% between 9:03 pm (2:03 am GMT). South Korea's Kospi fell 0.07% and the Bank of Korea made a policy decision on Friday.
In Australia, the ASX 200 Index rose 0.43% and in Hong Kong the Hang Seng Index rose 0.24%.
China's Shanghai Composite is down 0.02% and Shenzhen Component is down 0.23%.
US stocks, including the S&P 500 and Nasdaq 100, closed at their highest levels on Wednesday. The Core Consumer Price Index (CPI) rose 0.6% month-on-month and 5.5% year-on-year in December, according to data released in the United States. CPI was 7% on an annual basis and 0.5% on a monthly basis, the fastest pace since 1982.
The Federal Reserve said in a Basebook survey that the U.S. economy grew at a moderate pace in the last few weeks of 2021, but some expect corporate growth in the next few months.
U.S. inflation figures came after Federal Reserve Chairman Jerome Powell promised to curb inflation without compromising recovery from COVID-19.
Louis Fed President James Bullard told the Wall Street Journal that four interest rate hikes in 2022 might be reasonable in the face of high inflation. Cleveland Fed President Loretta Mister and Atlanta Fed President Rafael Bostick separately backed the March 2022 rate hike.
Other Fed officials, including Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker and Chicago Fed President Charles Evans, will speak later that day. John Williams, president of the Federal Reserve Bank of New York, will speak on Friday.
Inflation is a major concern for some investors.
Shana Cecil, chief market strategist at Strategic Wealth Partners, told Bloomberg: "Even if inflation continues to rise, inflation will continue to rise, and the economic challenges here will create it."
"I'm concerned that the market will fluctuate significantly and the economy will slow down significantly."
Meanwhile, after that day with Royal Brainard, vice chairman of the US Senate Banking Committee Fed, investors are waiting for the United States.
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