Asian markets go down in wait for bad news from Fed
On Friday, Asian stocks headed south as market participants mostly held fire ahead of clues from Janet Yellen, Fed Chair.
The S&P/ASX 200 tumbled 0.1%, South Korean Kospi lost 0.4%, while in Hong Kong, the Hang Seng Index acquired 0.6%. As for the Shanghai Composite index, it edged up by 0.1%.
Fed Chair is expected to speak later in the global trading day at the Jackson Hole meeting of key bankers.
In Japan, the Nikkei Stock Average slumped 0.9%, with insurance and automobile shares affected by expectations that Fed Chair would deliver downbeat news regarding the American economy. There’s no doubt it would push down bond profits and weaken the greenback.
Lower yields diminish insurers’ returns, while a weakening greenback pushes the Japanese yen higher, thus hurting Japan’s export competitiveness.
Toyota Motor tumbled 3%, Honda Motor lost 2.5%, while Nissan Motor sank 1%.
Financial experts find a December rate hike quite probable.