Asian shares, U.S. futures slide as traders fret about Ukraine, rate rises - Reuters

An electronic stock quotation board is displayed inside a conference hall in Tokyo, Japan November 1, 2021. REUTERS/Issei Kato

Register now for FREE unlimited access to Reuters.com

HONG KONG, Jan 25 (Reuters) - Asian shares and U.S. futures tumbled on Tuesday after a tumultuous Wall Street session, with investors nervous about the situation in Ukraine and eyeing the U.S. Federal Reserve amid worries about a move to tighter monetary policy globally.

NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western "hysteria" in response to its build-up of troops on the Ukraine border. read more

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) shed 1.2%, falling to its lowest in a month, and Japan's Nikkei (.N225) skidded 2% to its lowest level since August.

Register now for FREE unlimited access to Reuters.com

There were sharp declines around the region. Hong Kong (.HSI) lost 1.64% and Korea's KOSPI (.KS11) fell 1.67%. The Australian benchmark (.AXJO) tumbled 2.73% to hit an eight-month low, hurt also by a high inflation print Tuesday morning that stoked fears of approaching rate hikes Down Under. AZN0236PW

Asian markets were being dragged lower by concerns about faster U.S. rate hikes, mounting tensions over Ukraine, rising inflation and higher oil prices, said Carlos Casanova, senior economist at UBP.

"But on the upside, valuations are becoming more attractive and earnings growth are still robust for some sectors. So I think we will see a tug of war in the market for this week," he said.

U.S. futures also fell in Asian hours, Nasdaq futures (.NQc1) shed 1.2% and S&P500 futures lost 0.95%, after U.S. stock markets had recovered strongly late in the session to close higher, recouping steep losses made early in the day, as bargain-seeking investors snapped up shares.

The Dow Jones Industrial Average (.DJI) finished up 0.29%, the S&P 500 (.SPX) gained 0.28% and the Nasdaq Composite (.IXIC) added 0.63%.

Keeping traders on their toes, the Federal Reserve will begin its two-day meeting later on Tuesday, with investors starting to speculate that there is a small possibility that they will announce a surprise rate hike.

Investors are also anxiously looking out for any hints about the timing and pace of rate hikes expected later this year. Money markets are priced for a first rate hike in March, with three more quarter-point increases by year-end.

However, U.S. benchmark Treasuries were sitting out some of the speculation. Yields on benchmark 10 year notes were at 1.76%, steady on the day, having finished a choppy day of trading Monday near where they started.

Singapore's central bank also tightened monetary policy on Tuesday in an out-of-cycle move. read more

Market nerves sent the dollar higher against most peers. The dollar index was at 95.922, hovering near a two-week high, having gained 0.29% overnight. FRX

The Aussie dollar gained briefly after the high inflation print, but failed to hold on to its gains and the risk friendly currency was still hovering near the one-month low hit the day before.

Oil prices were also elevated, further worrying stock investors. U.S. crude rose 0.5% to $83.73 per barrel and Brent crude was at $86.83, up 0.65%.

Gold held on to its recent gains as investors sought safety. The spot price was at $1,841 an ounce, flat on the day but near last week's two-month high of $1,847.7.

Register now for FREE unlimited access to Reuters.com

Reporting by Selena Li, Xie Yu and Alun John; editing by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

Adblock test (Why?)

"asian" - Google News
January 25, 2022 at 10:17AM
https://ift.tt/3fW6lda

Asian shares, U.S. futures slide as traders fret about Ukraine, rate rises - Reuters
"asian" - Google News
https://ift.tt/2STmru2
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update