Asian Stocks Mixed Ahead Of Fed Rate Decision
Asian stock markets were mixed on Wednesday, June 15, 2022, ahead of the Federal Reserve's announcement of how sharply it will raise interest rates to cool US inflation, according to Associated Press (AP) reporter Joe McDonald.
Photo Insert: The Hang Seng in Hong Kong rose 1.2 percent to 21,312.67.
Shanghai and Hong Kong made strides. Tokyo and Sydney have both declined. Oil prices rose slightly. The S&P 500 index fell 0.4 percent on Tuesday as traders awaited a Fed rate hike expected to be three-quarters of a percentage point, or triple the usual margin.
They are concerned that aggressive Fed action to cool inflation, which is at a four-decade high, will tip the world's largest economy into recession.
A "hawkish surprise" from the Fed could be a "further shock to risk assets," according to ActivTrades' Anderson Alves in a report. "Money markets are already pricing around 90% possibility of such action," said one analyst.
On Wall Street, the S&P 500 fell to 3,735.48, 21.8 percent below its January 3 peak. That puts it in a bear market, or a 20% drop from the previous market high. The Dow Jones Industrial Average dropped 0.5 percent to 30,364.83, while the Nasdaq Composite gained 0.2 percent to 10,828.35.
The Shanghai Composite Index rose 1.1 percent to 3,323.64 after the Chinese government reported that factory output in May rebounded into positive territory as anti-virus controls that shut down businesses in Shanghai and other industrial centers eased.
The Hang Seng in Hong Kong rose 1.2 percent to 21,312.67, while the Nikkei 225 in Tokyo fell 0.7 percent to 26,435.01.
The Seoul Kospi fell 1.2 percent to 2,463.45 after the government reported that South Korea's unemployment rate rose 0.1 percent to 2.8 percent in May. The S&P-ASX 200 in Sydney fell 0.4 percent to 6,658.40. Singapore and New Zealand advanced, while Jakarta fell.