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Hong Kong tech leads losses in mixed Asia session; Fed, Bank of Japan rate decisions ahead this week

Soegeefx AppsAsia MarketHong Kong tech leads losses in mixed Asia session; Fed, Bank of Japan rate decisions ahead this week

Abigail Ng

Shares in the Asia-Pacific was mixed on Monday ahead of major central bank meetings this week.

The Hang Seng index in Hong Kong was 0.64% lower, with the Hang Seng Tech index down 1.9%. South Korea’s Kospi opened higher before falling 0.56% and the Kosdaq was 0.99% lower.

In mainland China, the Shanghai Composite gained 0.22% and the Shenzhen Component also gained 0.14%. The S&P/ASX 200 in Australia was up 0.15%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%. Japan’s market was closed for a holiday Monday.

TICKER COMPANY NAME PRICE CHANGE %CHANGE
.N225 Nikkei 225 Index *NIKKEI 27567.65 -308.26 -1.11
.HSI Hang Seng Index *HSI 18536.89 -224.8 -1.2
.AXJO S&P/ASX 200 *ASX 200 6740.1 1 0.01
.SSEC Shanghai *SHANGHAI 3115.6 -10.8 -0.35
.KS11 KOSPI Index *KOSPI 2364.44 -18.34 -0.77
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 7473.06 -32.39 -0.43

Later this week, the Federal Reserve and the Bank of Japan will be announcing their interest rate decisions.

Traders are betting on a 75-basis-point rate hike from the Fed, with the probability standing at 82%,  according to the CME FedWatch tracker of Fed funds futures bets.

The Bank of Japan is expected to keep rates on hold at ultra-low levels, analysts predicted in a Reuters poll.

Chinese yuan has room to weaken further in the near-term, Goldman Sachs says

There’s still room for the Chinese yuan to weaken further, economists at Goldman Sachs said after both the onshore and offshore yuan fell to their lowest levels since July 2020 last week.

“We expect CNY weakness to persist in the near-term, underpinned partly by broad USD strength,” strategists said in a note, adding the next key level to watch is 7.20, which was last tested in May 2020.

Such a move, however, will come in tandem with a “sizable” strengthening the U.S. dollar, they said in the note, adding “CNY is unlikely to weaken by 3% in isolation.”

—Jihye Lee

CNBC Pro: Buy these inflation-beating funds to protect your money, strategist says

As inflation remains stubbornly high, where can investors hide out given that U.S. stocks and bonds alike have been volatile?

There are three types of funds that look appealing right now, according to Mark Jolley, global strategist at CCB International Securities. He named his favorites in each category.

— Weizhen Tan

Source : CNBC

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