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

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