In Asia, stock markets are inconsistent – Rising interest rates weigh on growth companies


Asian stock markets continued to be in a mixed mood, with the Hang Seng index rising 0.1 percent in Hong Kong and the mainland Chinese index falling 0.5 percent in Shanghai and 0.8 percent in Shenzhen.

In Japan, the Nikkei index fell 0.9 percent and in South Korea the Kospi index fell 0.1 percent.

The market is nervous about rising interest rates. The market interest rate on the 10-year U.S. government bond already hovered more than 1.8 percent, the highest since early 2020 before the interest rate pandemic began. The interest rate fell overnight to 1.762 percent. At the end of 2021, the interest rate was 1.51 percent.

The market interest rate on the German 10-year government bond is already approaching zero, at 0.038 per cent. The last time the interest rate was positive was in 2019.

The rise in interest rates is particularly evident in the decline in the shares of growth companies. In Japan, for example, companies in the technology sector fell sharply. Instead, the financial sector benefiting from interest rate hikes was on the rise.

The market expects the US Federal Reserve to raise interest rates faster than previously forecast. The reason is rising inflation.

In the United States, the broad S&P 500 index fell yesterday, but the Nasdaq index rose to a positive end of the day after being clearly in the red for almost the entire trading day.

The Nasdaq had its worst percentage drop since last week since February. The index swung 4.5 percent last week.

More information on inflation will be available tomorrow, Wednesday, when the change in the US bottom-up consumer price index was announced in December.

The euro has strengthened since Monday afternoon. One euro earns $ 1,134 or 130.67 Japanese yen. One dollar gets 115.21 yen.


Source: Arvopaperi by www.arvopaperi.fi.

*The article has been translated based on the content of Arvopaperi by www.arvopaperi.fi. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!