Asian Stocks Down as Biden Confirms Fed Chair Reappointment

Asia Pacific stocks went down on Tuesday morning after the announcement of Jerome Powell’s reappointment as Fed Chair. The news confirmed the hawkish stance of markets betting on monetary policies.

South Korea’s KOSPI went down 0.54% by 9:16 PM ET ahead of the Bank of Korea’s policy decision. The Hang Send Index slid down 1.02% whereas the Shanghai Composite was up 0.24%. The Shenzhen Component went down 0.23%. Due to the holiday in Japan, no Cash Treasuries were traded in Asia.

Robert Schein from Blanke Schein Wealth Management told Bloomberg, “While investors no longer have to wonder about who will be leading the Fed for the next few years, the big dilemma what the central bank faces is how to normalize monetary policy without upsetting markets.”

Investors are looking towards the upcoming data release for initial jobless claims and minutes from the previous Fed chair meeting. In other news, Europe is expected to release its PMI whereas the Bank of England Governor Andrew Bailey will be speaking at a union event in Cambridge.

©Photo: REUTERS