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

Asian Stocks Up, Sentiment Steadies but Chance of Further Volatility Remains

Stock Markets May 20, 2022 03:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Asia Pacific stocks were up on Friday morning, with U.S. futures also climbing higher as a measure of calm returned to markets. However, concerns of an economic slowdown and China’s ongoing COVID-19 outbreaks could lead to more volatility.

Japan’s Nikkei 225 was up 0.84% by 10:11 PM ET (2:11 AM GMT). The consumer price index (CPI) n.s.a. grew 0.4% month-on-month in April 2022, whole the national core CPI grew 2.1% and the national CPI grew 2.5% year-on-year.

South Korea’s KOSPI rose 1.46% and in Australia, the ASX 200 rose 0.94%.

Hong Kong’s Hang Seng Index jumped 1.51%.

China’s Shanghai Composite was up 0.70% and the Shenzhen Component rose 1.20%. The People’s Bank of China held the one-year loan prime rate (LPR) at 3.7%, while cutting the five-year LPR to 4.45% from the previous month’s 4.6%.

Regional shares mostly shrugged off modest losses in their U.S. counterparts on Thursday, while European contracts also made gains. Sovereign bonds mostly held a rally, with the U.S. 10-year Treasury yield at 2.85% and the dollar trimming its biggest one-day drop since 2020.

COVID-19 lockdowns in China continue to impact economic growth, according to a Bloomberg survey. Shanghai found three COVID-19 cases outside quarantine, which raises questions on whether authorities will go ahead with plans to ease a lockdown in the city. The offshore yuan fell.

Concerns over an imminent economic downturn continue, due in part to the U.S. Federal Reserve hiking interest rates to curb high inflation. Global shares are now set for a historic seventh week of declines.

Equities were having a “rough” patch, according to Kansas City Fed President Esther George, but she did nothing to soften the U.S. central bank’s hawkish tone.

“Inflationary pressures look very much persistent at the moment,” BNY Mellon (NYSE:BK) Investment Management senior market strategist Lale Akoner told Bloomberg.

“The biggest risk right now is developed-market central banks might trigger a recession. We are increasingly suspecting that they made a policy mistake.”

Investors also digested a higher-than-expected number of weekly initial jobless claims, which stood at 218,000 according to Thursday’s data. The Philadelphia Fed manufacturing index for May 2022 was 2.6, much lower than the 16 predicted in forecasts prepared by and the previous month’s 17.6 figure.

Elsewhere, the war in Ukraine, perpetrated by Russia’s invasion on Feb. 24, continues. The U.S. Senate on Thursday passed an aid package totaling more than $40 billion for Ukraine, with the bill now on President Joe Biden’s desk for his signature.

However, China is looking to stock up its strategic crude stockpiles with cheap Russian oil, a potential sign that it is strengthening its energy ties with Russia as the European Union works toward implementing sanctions on Russian imports in response to the war.

Investors in the U.S. are bracing for more volatility later in the day due to the monthly expiration of options tied to equities and exchange-traded funds.

Asian Stocks Up, Sentiment Steadies but Chance of Further Volatility 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.
Comments (1)
David Hawley
David Hawley May 20, 2022 4:46
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So say the financial might go up, but it might go down
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