Asian equities are mixed on Tuesday as investors evaluated the implication of a global wave of monetary tightening to tackle elevated inflation.
Shares in Mainland China, Hong Kong, South Korea and Japan are steady while the MSCI Asian Index ex Japan dipped by 0.43%.
Last week, China vowed support for so-called platforms firms, stirring hopes for a softer regulatory stance toward tech companies. But the Chinese state may also seek a 1% stake in the nation’s biggest tech firms as well as a direct role in corporate decisions, according to a report.
Treasuries fell Monday, taking the 10-year yield to 3% and sending real yields back above zero. There’s no cash trading in Asia due to the Japan break.
Investors are bracing for the Federal Reserve’s biggest rate hike Wednesday since 2000, one of many central bank decisions this week. A dollar gauge slipped while remaining in sight of a two-year high.
“Our view remains that the right strategy right now is to position for inflation — a clear and present fact — rather than recession, which is still only a possibility,” Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a note.
Crude oil WTI held at $105 a barrel while Brent held at $107 a barrel weighing on supply disruptions liked to Russia’s war in Ukraine along with demand risks from China’s COVID struggles.
