TOKYO (AP) – Asian shares mostly sank yesterday over worries about a possible United States (US) government shutdown and the troubled Chinese economy.
Japan’s benchmark Nikkei 225 index slipped 1.0 per cent in afternoon trading to 32,357.25.
Australia’s S&P/ASX 200 dipped 0.5 per cent to 7,044.90. South Korea’s Kospi dropped nearly 1.3 per cent to 2,463.63. Hong Kong’s Hang Seng shed 0.9 per cent to 17,576.83, while the Shanghai Composite fell 0.2 per cent to 3,109.69.
Investors are watching for Chinese economic indicators being released later in the week.
“The Chinese property woes are far from over, as the notorious developer Evergrande defaulted on its CNY4 billion onshore bond repayment and delayed the restructuring meetings,” said Tina Teng, market analyst at CMC Markets APAC & Canada.
Wall Street clawed back some of its steep losses from last week. The S&P 500 rose 17.38, or 0.4 per cent, to 4,337.44, coming off its worst week in six months. The Dow Jones Industrial Average edged up 43.04, or 0.1 per cent, to 34,006.88, and the Nasdaq composite gained 59.51, or 0.5 per cent, to 13,271.32.
Realisation is sinking in that the Federal Reserve will likely keep interest rates high well into next year. The Fed is trying to ensure high inflation gets back down to its target, and it said last week it will likely cut interest rates in 2024 by less than earlier expected. Its main interest rate is at its highest level since 2001. The growing understanding that rates will stay higher for longer has pushed yields in the bond market up to their highest levels in more than a decade.
