Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Asian Stocks Down as Uncertain Economic Outlook Remains

Stock Markets May 23, 2022 03:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Asia Pacific stocks were mostly down on Monday morning, with investors continuing to assess the economic growth outlook for the world’s largest economies and whether a recent selloff will continue.

Japan’s Nikkei 225 gained 0.45% by 10:25 PM ET (2:25 AM GMT), while South Korea’s KOSPI inched down 0.01%.

In Australia, the ASX 200 inched up 0.05%. Saturday’s election that delivered a clear victory for Australia’s Labor Party gave the Australian dollar a boost, and Anthony Albanese was sworn in as the country's 31st prime minister earlier in the day.

Hong Kong’s Hang Seng Index fell 1.29%.

China’s Shanghai Composite was down 0.44% and the Shenzhen Component was down 0.32%. The People’s Bank of China held the one-year loan prime rate (LPR) at 3.7%, but cut the five-year LPR to 4.45%, on Friday.

Nasdaq 100 and S&P 500 futures rose about 1%, but the S&P 500 fell for a seventh consecutive week in a stretch of weakness unseen since 2001.

U.S. Treasuries gave up some of Friday’s gains, with investors debating the U.S. Federal Reserve’s tighter monetary policy as concerns continue to grow about an economic slowdown.

However, uncertainty remains as concerns about slowing economic growth and the ongoing war in Ukraine, perpetrated by the Russian invasion on Feb. 24. Commodity prices remain elevated due to the war, while supply chains remain disrupted due to ongoing COVID-19 restrictive measures in China.

“As macro-economic concerns stemming from aggressive monetary tightening, the Russia-Ukraine conflict, and China’s stringent COVID-19 lockdowns persist, we anticipate great volatility in the market,” Federated Hermes (NYSE:FHI) Ltd. portfolio manager global equities Louise Dudley said in a note.

Investors now await the minutes from the last Fed meeting, due on Wednesday. St. Louis Fed President James Bullard said the central bank should front-load a series of interest rate hikes to push rates to 3.5% at the end of 2022, which if successful would curb inflation and could lead to easing in 2023 or 2024.

Atlanta Fed President Raphael Bostic and Kansas City Fed President Esther George are also due to speak later in the day.

Across the Atlantic, European Central Bank (ECB) Governing Council members Robert Holzmann and Joachim Nagel will be joined by Bank of England Governor Andrew Bailey to discuss inflation at an event later in the day

Meanwhile, the Reserve Bank of New Zealand will hand down its policy decision on Wednesday, with the Bank of Korea following a day later.

On the data front, the Eurozone manufacturing and services purchasing managers’ indexes (PMIs) are due on Tuesday, with the ECB publishing its Financial Stability Review a day later.

U.S. new home sales, as well as the manufacturing and services PMIs, are due Tuesday, with the GDP due on Thursday. The Core Personal Consumption Expenditure (PCE) prices index and the University of Michigan consumer sentiment will follow a day later.

Asian Stocks Down as Uncertain Economic Outlook Remains

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email