By Zhang Mengying
Investing.com – Asia Pacific stocks were up on Wednesday morning as markets are worried about whether the global economy can weather interest rate hikes.
Japan's Nikkei 225 fell 1.11% by 10:16 PM ET (2:16 AM GMT).
South Korea’s KOSPI fell 1.61%.
In Australia, the ASX 200 dived 1.28%.
Hong Kong’s Hang Seng was down 1.16%.
China’s Shanghai Composite was down 0.38% while the Shenzhen Component was down 0.32%. China took a surprise move Tuesday to cut quarantine times for inbound travelers to seven days from 14 days in centralized quarantine facilities. The step lifted market hopes of China’s shift to another COVID-19 strategy which could cost less economic damage.
Investors are skeptical that the U.S. Federal Reserve could raise interest rates sharply while avoiding an economic downturn.
“The Fed still believes it can thread that very fine line between tightening financial conditions while not hurting the economy too much,” State Street Corp (NYSE: STT ). macro strategist Emily Weis told Bloomberg.
“We’re still not sure they’re going to be able to pull that off. That’s what we’ve seen reflected in the markets over the last month or so.”
New York Fed President John Williams and San Francisco’s Mary Daly said that they had to cool inflation but insisted that a soft landing was still possible.
In Europe, central bank President Christine Lagarde affirmed plans for an initial quarter-point rate increase in July.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.