8 Feb 2022
Asian Stocks Plummet while Euro Remains Stable amid Upcoming U.S. Inflation Reports
The Index Today
Asian stocks repealed early gains after investor attitude turned sour, informed by U.S. sanctions on 33 Chinese firms, even as the euro steadies ahead of the upcoming inflation reports due Thursday.
However, markets remain cautious as possible monetary tightening looms, especially with the recent hawkish stance of the European Central Bank (ECB) at their policy meeting last week.
European equities are poised for a mixed start as Euro Stoxx 50 futures relax, with FTSE futures inching up by 0.1%.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped by 0.3% to 612.3 at 1:06am ET, after previously reaching 617.7 which marked the highest level since January 25th.
Japan’s Nikkei inched up by 0.3% and South Korean stocks rose by 0.5%. While Taiwan stocks climbed by 0.6%, Hong Kong’s Hang Seng Index dropped by 1.5%.
Chinese stocks sustained a marked blow with the CSI300 index plummeting by 1.8% after the U.S. added 33 Chinese companies to its export control list.
Principal Global Investors’ Chief Strategist Seema Shah contended, "Much of investors' concern is focused on the five Fed increases that markets are pricing in for 2022, and if they won't be sufficient to contain inflation." She also added that despite that “the Fed's urgency to tighten should soon ease as the most acute economic price pressures start fading. Furthermore, while U.S. growth has likely peaked, a recession isn't in the cards."
©Photo: AP and Reuters