TOKYO : Most Asian equity markets edged higher on Friday, while the U.S. dollar hung near its weakest level since May, with investors fretting about the risks of a global recession as the Federal Reserve presses on with interest rate increases.
U.S. Treasury yields remained elevated in Tokyo after bouncing off four-month lows overnight.
Japanese government bond yields stayed depressed, two days after the Bank of Japan defied investor pressure to loosen yield curve controls further.
Japan’s Nikkei added 0.16 per cent, while Australia’s benchmark edged 0.09 per cent higher, although South Korea’s Kospi slipped 0.24 per cent.
Hong Kong’s Hang Seng advanced 0.75 per cent and mainland blue chips were 0.32 per cent firmer.
Asian markets showed some
resilience despite a selloff on Wall Street overnight, with the S&P 500 losing 0.76 per cent.
E-Mini futures indicated a small bounce at the reopen though, gaining 0.24 per cent.
Worries about more Fed tightening were heightened by robust U.S. employment data and fresh hawkish rhetoric from central bank officials.
Weekly jobless claims were lower than expected, pointing to a tight labour market.
Boston Fed President Susan Collins said the central bank would probably need to raise rates to “just above” 5 per cent, then hold them there, while Fed Vice Chair Lael Brainard said that despite the recent moderation in inflation, it remains high and “policy will need to be sufficiently restrictive for some time”.
Source: Reuters
