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Asia stocks on the skids, HK hits 11-month low

Tiger Newspress2021-09-20

Asian shares slid and the dollar held firm on Monday ahead of a week packed with no less than a dozen central bank meetings, highlighted by the Federal Reserve which is likely to take another step toward tapering.

Holidays in Japan, China and South Korea made for thin conditions, and politics added extra uncertainty with elections in Canada and Germany bookending the week.

The stocks in Hong Kong skidded more than 4% to their lowest in almost 11 months.

MSCI's broadest index of Asia-Pacific shares outside Japan slid another 1.4%, after shedding 2.5% last week, with Australia down 1.5%.

Japan's Nikkei was shut, but futures were 400 points below the Friday cash close. The market could do with consolidating after surging to 30-year highs on hopes a new Prime Minister will bring more stimulus and policy change.

Nasdaq futures eased 0.5% and S&P 500 futures fell 0.3%, with Wall Street ending last week on a soft note after disappointing U.S. consumer confidence data.

The Fed is still expected to lay the groundwork for a tapering at its policy meeting on Tuesday and Wednesday, though the consensus is for an actual announcement to be delayed until the November or December meetings.

Yields on 10-year Treasuries touched a two-month top and the curve flattened ahead of the meeting.

"A flatter yield curve suggests some fears the Fed may overdo the eventual hiking cycle," cautioned Tapas Strickland, a director of economics at NAB.

He noted only 2-3 FOMC members would need to shift their "dot plot" forecasts for a hike in 2022 to make it the median, given seven of 18 had already tipped a move next year.

"The Fed will also have dots for 2024 which will give an indication of the steepness of the potential hiking cycle."

The market consensus is for two hikes in 2023 and four in 2024 with the longer-run fed funds rate seen at 2.125%.

Central banks in the EU, Japan, UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Brazil, South Africa, Turkey and Hungary all have meetings this week.

The Norges Bank is expected to be the first in the G10 to raise interest rates.

Higher U.S. yields has combined with general risk aversion to benefit the dollar which was up near a one-month high at 93.303 on a basket of currencies.

It was range bound on the yen at 109.96 , while the euro was near its lowest in three weeks at $1.1717 in part on uncertainty ahead of Germany's election this weekend.

Canada goes to the polls on Monday with the race too close to call.

The firmer dollar weighed on gold, which was pinned at $1,749 an ounce after losing 1.9% last week.

Oil prices eased as energy companies in the U.S. Gulf of Mexico restarted production after back-to-back hurricanes in the region shut output.

Brent fell 54 cents to $74.80 a barrel, while U.S. crude lost 57 cents to $71.40.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment25

  • tanks09
    ·2021-09-20
    Ya My Alibaba very Low.. please make it rise.. give some likes 
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    • tanks09
      Huat
      2021-09-29
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    • TimTamPrata
      Huat
      2021-09-29
      Reply
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    • tanks09
      Huat
      2021-09-29
      Reply
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  • Kel9670ong
    ·2021-09-20
    Hk stock market are now closely connected with China so expected to be volatile 
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  • maxwellC
    ·2021-09-20
    Wow
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  • Nibatry
    ·2021-09-20
    哇T^TT^T
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  • liontrader
    ·2021-09-20
    Looks like not the bottom yet!
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  • Sohws
    ·2021-09-20
    Prepare for the turbulence! Like pls
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  • Mellysho
    ·2021-09-20
    ?
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  • cutemiao
    ·2021-09-20
    [捂臉] 
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    • cutemiao
      Scary [捂脸]
      2021-09-21
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    • AntLiew
      evergrande fall has great impact on world market
      2021-09-21
      Reply
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    • Angsana
      loke
      2021-09-20
      Reply
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  • turbotweep
    ·2021-09-20
    Goodness 
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  • Sflee
    ·2021-09-20
    ?
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  • 老Uncle
    ·2021-09-20
    Die  Halfway? ??
    Reply
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    • 老Uncle
      ??
      2021-09-20
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    • 老Uncle
      yay ??
      2021-09-20
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    • 滚股怪
      Wow
      2021-09-20
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  • koolgal
    ·2021-09-20
    It is a rocky start this week with the Asian shares heading south! Great time to buy your favourite stocks! ?
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  • michthian
    ·2021-09-20
    ok
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  • eddiec
    ·2021-09-20
    Oh no ?
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    • erichosk
      don't worry.
      2021-09-20
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  • IZLIN
    ·2021-09-20
    Reply
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  • imsomeonelse
    ·2021-09-20
    Sadded
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  • Joe0319
    ·2021-09-20
    Like please
    Reply
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    • Joe0319
      ok
      2021-09-21
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    • Joe0319
      ok
      2021-09-20
      Reply
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    • raidou
      Done
      2021-09-20
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  • Zified
    ·2021-09-20
    Ok
    Reply
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    • Joe0319
      ok
      2021-09-20
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  • 濠時勢
    ·2021-09-20
    upup
    Reply
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    • Zified
      Ok
      2021-09-20
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  • DMC8
    ·2021-09-20
    Ok
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