On Friday, 25 March 2022, Asian shares geared up for a 2nd consecutive week of profits, although the market was choppy amidst displacements in Chinese economic policies, tight US monetary policies, and commodity market disturbances due to the Ukraine-Russia war.
If you are looking for stock market news and updates on Asian markets and shares, you’re on the right page. Keep reading!
How Are the Asian Shares Performing?
MSCI’s index of Asia-Pacific stocks traded flat outside Japan. However, it hiked by 1% this week. Nikkei of Japan was also somewhat variable, having closed at a 9-week hike. Shares of Hong Kong disappointed the market, dropping 0.5%, dragged by tech shares. This is due to an issue in the audit records concerning Hong Kong and US dual-listed names.
Chinese blue chips dipped by 0.4%, while Australian shares increased by 0.4%, being backed by the mining sector.
What Are the Initiatives of Japan and China?
As stated by Liu He (Chinese vice premier), Beijing will support the Chinese market, sending Hong Kong and Chinese shares higher initially. Besides, it would be interesting to notice whether the Bank of Japan would purchase JGB (Japanese government bonds) as the targeted yield was under pressure.
On Friday, the yields on ten-year JGBs hiked to 0.235%. This surpassed the threshold at which the BOJ wished to purchase a lump-sum amount of JGBs at nearly 0.25% on 10 February. It helps to keep interest rates at low levels.
The US Treasury yields have pulled the Japanese bond yields, and with this, the US Federal Reserve may hike rates in the coming days.
What About the US Stocks?
The dollar’s gains compared to other currencies have been surprising. The value of the US currency’s benchmark against 6 peers dropped at 98.536. The 3 major US share indexes rallied above 1% with chipmakers’ beaten-down shares and a dip in oil prices.
In Asia trade, S&P 500 Futures increased by 0.1%. In order to cool markets, the United States released more oil. However, prices have been historically high.
In Asia, there has been stability in asset prices with shifts in China’s policies. However, with better regulations and additional easing, sustainability can be achieved. US economic policies will continue to influence the decisions of global investors.
Frequently Asked Questions
1. What has been the yield for US ten-year notes?
US ten-year notes yielded nearly 2.3681% marking a change from a twenty-two-month high of about 2.417%.
2. How much did the dollar jump on Friday?
On Friday, 25 March 2022, the dollar jumped 0.41%, standing at 121.84 Yen. This marks a multi-year high.
3. By how much did US crude and Brent crude drop?
US crude dropped 0.5%, standing at $111.74 per barrel, and Brent crude dropped 0.22%, standing at $118.77 a barrel.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.