SYDNEY: Asian share markets slid on Monday (Sep 9) after worries about a possible US economic downturn slugged Wall Street while dragging bond yields and commodity prices lower as investors avoided risk assets for safer harbours.
A man walks past electronic screens displaying Japan's Nikkei share average outside a brokerage in Tokyo, Japan, Aug 2, 2024. SYDNEY: Asian share markets slid on Monday after worries about a possible US economic downturn slugged Wall Street while dragging bond yields and commodity prices lower as investors avoided risk assets for safer harbours.
So far, markets imply only a 29 per cent chance of a large cut, in part due to comments from Fed Governor Christopher Waller and New York Fed President John Williams on Friday, though Waller did leave open the option of aggressive easing. Investors are considerably more dovish and have priced in 115 basis points of easing by Christmas and another 127 basis points for 2025.
"Wage growth and services inflation remain strong, emboldening the hawks, while growth indicators are flagging softer, emboldening the doves," they added."Quarterly cuts are likely more consistent with the new projections." The drop in yields encouraged a further unwinding of yen carry trades which saw the dollar sink as deep as 141.75 yen on Friday before steadying at 142.41 early on Monday.Data on consumer prices from China due later Monday are expected to show the Asian giant remains a force for disinflation, with producer prices seen falling an annual 1.4 per cent in August.
Also on Tuesday, Democrat Kamala Harris and Republican Donald Trump debate for the first time ahead of the presidential election on Nov 5.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street wants more signs US consumers are still spendingConsumer spending is the biggest driver of US economic growth, making up two-thirds of it on average.
Read more »
Wall Street muted as investors look to Fed after stocks recovery:Global shares idled on Wednesday after a lengthy rebound propelled them towards recent record highs, and as investors awaited clues on interest-rate cuts from the Federal Reserve to decide their next move.
Read more »
Nvidia suffers record US$279 billion loss in market value as Wall Street dropsShares of AI heavyweight Nvidia tumbled 9.5 per cent on Tuesday (Sep 3) in the deepest single-day decline in market value for a US company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.
Read more »
Asia’s healthcare professionals to learn from one another at new institute in S’poreThe Asian Institute for Healthcare Leadership and Management will adopt a 'for Asia, by Asia' approach.
Read more »
For Asia, By Asia: New Asian Institute aims to revolutionize healthcare management across the continentThis innovative institute is set to become a beacon for future healthcare leaders
Read more »
Singapore will have largest share of passenger EVs in S-E Asia by 2040: ReportIn total, 80 per cent of passenger vehicles in the Republic are expected to be electric by 2040.
Read more »