Kevin Buckland
TOKYO (Reuters) – Asian markets extended a sell-off in global equities on Wednesday, as strong U.S. jobs data further fueled investor fears of aggressive monetary tightening.
Overnight JOLTS’ job vacancy report – closely watched by the Fed – pointed to extremely tight labor conditions, defying the Fed’s tightening efforts so far and supporting more action.
In a bid to stem speculation of a rate cut next year, New York Fed President John Williams said Tuesday that the central bank may need to raise policy rates above 3.5% and is unlikely .
“Strong JOLTS data and Fed comments are overwhelming narrative”, further hammering stocks and pushing bond yields higher, National Australia Bank (OTC) ) analyst Tapas Strickland: NABZY), wrote in a note to clients.
“Financial health is a key transmission mechanism for Monet”
Japan’s Nikkei fell 0.6%, While Australia’s benchmark index fell 0.4%, South Korea’s Kospi lost 0.4% and lost 0.5%.
Chinese blue chips fell 0.5%. Hong Kong’s Hang Seng Index fell 1.8 percent, with its technology sector down 2.5 percent.
MSCI’s broadest index of Asia-Pacific shares fell 0.7%. Its global stock index fell 0.9% on Tuesday, its third straight day of losses.
U.S. stock futures, while pointing to some respite, S&P e-mini rose 1.1% from Tuesday It rebounded 0.3% from the decline.
Investors will now pay more attention
Earlier on Tuesday, data showed that German inflation rose to nearly 109 the highest level since in August 2018, strengthening the case for the ECB to also raise rates on a massive scale next month.
Current currency market gains 28.5% of Odds 92 The Fed raises the basis point in September 15.
The two-year U.S. Treasury bond yield, which is relatively sensitive to the outlook for monetary policy, hit a new high – year high 3.108% overnight, but eased back to 3.723% traded in Tokyo.
-Yield on one-year Treasury bonds , hitting a two-month high of 3.153% remained at 3. on Tuesday %.
U.S. dollar index , which measures the currency against its six major peers, was slightly weaker to108. 28, after the start of the week, at 153 hit a two-year high. .
Gold hardly changed, for $1, 723.56, hovering Near a one-month low of $1, 719.50, set to Monday.
Crude oil rebounded from overnight losses of more than $5 as industry data showed that U.S. fuel inventories fell more than expected.
U.S. West Texas Intermediate (WTI) crude oil futures rose 56 cents to $92.109 fell $5 a barrel in early Asian trade. 28 The previous session was driven by recession fears.
Brent Crude Oil Futures Up 21 cents, or 0.5%, to $92.92 a barrel, down $5 on Tuesday. 69 Lost.
