The yen has fallen as the BOJ opposes the trend of yields, as oil hits due to the suspension of operations in Shanghai.

During the outbreak of coronavirus disease (COVID-19), a man wearing a protective mask displays the Nikkei Index graph (above) outside a securities company in Tokyo, Japan, on March 10, 2022. I passed the board. REUTERS / Kim Kyung-Hoon

Sign up now for unlimited free access to Reuters.com

  • > Asian Stock Markets:
  • Oil prices have fallen by more than $ 3 as China’s blockade spreads
  • Bonds pressured by the Fed’s predictions
  • The yen will fall as the Bank of Japan acts to stop rising yields
  • US salary starring in a busy week for data

Sydney, March 28 (Reuters)-Asian stocks fell and oil prices fell on Monday as the blockade of the coronavirus in Shanghai hurt economic activity.

The 26 million Chinese financial hub has told all companies to suspend production or work people remotely with a two-step blockade over a nine-day period.read more

Brent fell from $ 3.39 to $ 117.26 and US crude oil fell from $ 3.41 to $ 110.49 due to widespread regulation of the world’s largest oil importers.

Sign up now for unlimited free access to Reuters.com

Expectations for progress in Russia-Ukraine peace talks this week in Turkey are at risk after President Volodymyr Zelensky said Ukraine is ready to discuss adopting a neutral position as part of the deal. Promoted emotions. {nL2N2VU0EH]

Equity action was silenced with MSCI’s widest non-Japanese Asia Pacific stock index (.MIAPJ0000PUS) leveling off. The index fell 2.1% this month, well above recent lows.

China’s best stocks (.CSI300) fell 0.8%. Japan’s Nikkei (.N225) fell 0.4%, but it is up nearly 6% this month as the yen’s depreciation promised to boost exporters’ profits.

S & P 500 futures fell 0.3% and NASDAQ futures fell 0.4%. Eurostocks 50 futures rose 0.3% and FTSE futures rose 0.2%.

Wall Street has so far proved to be highly resilient to the hawkish Federal Reserve. The market will raise interest rates eight times at the remaining six policy meetings this year, with interest rates between 2.50 and 2.75%.

Citi forecasts a tightening of 275 basis points this year, including a half-point increase last week in May, June, July and September.

“The Fed expects to continue raising rates until 2023, reaching the policy rate target of 3.5-3.75%,” said Citi analysts.

The main data event this week is Friday’s US salary, with unemployment expected to reach a new post-pandemic low of 3.7%, with a solid increase of 475,000. And EU inflation.

“US data will help shape expectations of whether fiscal tightening is beginning to spill over into the wider economy,” said NatWest Markets analysts.

Yields on 10-year Treasuries rose 33 basis points last week to a staggering 71 basis points this month to 2.53%, significantly raising US mortgage rates.

“The next key theme is growing concerns about a recession as the Fed embarks on a slowdown in growth and may support peak yields for this summer,” NatWest warned. ..

In the currency market, the Japanese yen is a big loser as policy makers keep yields near zero and commodity prices are soaring.

The Bank of Japan strengthened its ultra-loose policy on Monday by proposing to buy as many bonds as needed to keep 10-year yields below 0.25%.

As a result, the dollar reached a peak of 123.16 yen for the first time in six years, rising 6.9% this month. Similarly, the resource-rich Australian dollar rose more than 10% to reach 92.44 yen.

Even the euro, which is otherwise sick, is up 4% against the yen this month to 134.56. In the same period, the single currency fell about 2.3% against the dollar, but $ 1.0954 is slightly above the valley of the last two years, $ 1.0804.

The depreciation of the yen caused the US dollar index to rise at 99.098, rising 2.5% monthly.

In the commodity market, gold softened to $ 1,947 per ounce, but still rose about 2% per month.

Sign up now for unlimited free access to Reuters.com

Edited by Jacqueline Wong

Our Criteria: Thomson Reuters Trust Principles.


About the author


Leave a Comment