Asian Stocks Mix Over Fears of An Economic Downturn

© Reuters.

By Zhang Mengying

Investing.com – Asia Pacific stocks were mixed on Friday morning on concerns about an economic downturn as monetary policy tightens.

Japan’s fell 2.23% by 10:32 PM ET (2:32 AM GMT).

South Korea’s fell 1.24%

In Australia, the was down 2.00%

Hong Kong’s gained 1.00%

China’s was up 0.33% while the was up 1.01%

Global central banks are rolling out tight monetary policies to tame red hot inflation.

The U.S. Federal Reserve announced Wednesday an interest rate hike of 75 basis points, sparking worries of an economic downturn. The also unexpectedly hike rates by 50 basis points on Thursday, while the to 1.25% on the same day.

The will hand down its monetary decisions later in the day, which is set to remain at ultra-low rates. However, doubts are growing that whether the BOJ will stick to its stance. Japan’s 10-year bond yield hit 0.265%, the highest since 2016.

There is “a building expectation that the Bank of Japan will need to amend their policy stance closer to some version of normal,” BMO Capital Markets strategists Benjamin Jeffery and Ian Lyngen said in a note.

Investors now are focused on “all of the half-empty things and how much narrower” the Fed’s path is “in trying to stick a soft landing,” BMO Family Office deputy chief investment officer Carol Schleif told Bloomberg.

In cryptocurrency, fell toward the $20,000 level.

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