Asian equities inched down on Friday as traders weigh prospect of economic recovery to risk from Fed’s monetary policy tightening to impact of the war in Ukraine.
The CSI300, HSI and TOPIX is down by 0.34%, 0.58% and 0.12% respectively. The MSCI Asian Broad Market Index ex Japan is down by 0.45%>
Treasuries held losses, leaving the U.S. 10-year yield in the vicinity of levels last seen in 2019. But key parts of the U.S. Treasury yield curve continue to flatten or are inverted. That’s stirring debate as to whether the bond market is flagging a steep economic slowdown or even a recession ahead.
The latest U.S. data showed applications for U.S. state unemployment insurance fell last week to the lowest since 1969, while a measure for business activity advanced to an eight-month high in early March.
Chicago Fed President Charles Evans said Thursday he’s “comfortable” with raising rates in quarter-point increments, while being “open” to a 50 basis-point move if needed. The U.S. central bank raised the benchmark rate a quarter point last week, the first increase since 2018.
Crude oil retreated gains after European Union leaders refrained from fresh steps to cut imports of Russian crude. The WTI is trading around $111 a barrel and Brent is trading around $118 a barrel.
