A mixed trend was observed in Asian stock markets kakım new cases of corona virus (Covid-19) in China increased.
As the deepening recession and inflation concerns around the world increase uncertainties about monetary policies, the number of Covid-19 cases in China is also putting pressure on markets. While US Federal Reserve (Fed) members did not provide any hints on the final interest rate in their speeches yesterday, US recession prices continue to strengthen ahead of the release of the Fed meeting minutes tomorrow.
The difference between the US 10-year bond yield and the 3-month Treasury yield, considered a sign of recession for the coming period, is at its highest level since August 2019 at minus 54 basis points. The Fed is expected to raise interest rates by 50 basis points with a 75% probability and 75 basis points with a 25% probability at its December meeting. Due to the increase in Covid-19 cases in China and the ongoing “zero Covid-19” policy, protection and prevention measures have been increased in the capital Beijing. In most of the central districts of the city, citizens are advised to stay away from home kakım much kakım possible, while online training has started today in schools for a week. Although Chinese stock markets fell early on fears that the measures taken could negatively affect economic activity, the Shanghai Composite Index rose, albeit modestly, on expectations that the government could reduce the impact of measures with measures to support economic growth. With these developments, China’s Shanghai Composite Index rose 0.13% to 3,088 points and South Korea’s Kospi Index fell 0.59% to 2,405 points. In Japan, the Nikkei 225 index rose 0.61% to 28.115 points, while the dollar/yen parity is trading at 141.8, 0.2% lower than the previous closing level. Hong Kong’s Hang Seng Index fell 1.2% to 17,439 points, while India’s Sensex Index settled at 61,320 points, up 0.8%.