Asian stocks are influenced by "Wall Street" and the risk of inflation

Asian stocks have taken downward trend like their US peer after a wave of US bonds due to the bets that the Federal Reserve will postpone the reduction in interest rates because of the risk of inflation. The shares in Sydney, Hong Kong and Tokyo fell, which lowered the regional index. The decline in major technology companies was an important factor in trade in the United States, as the share of “Invidia” fell by more than 6% after failing to satisfy investors’ expectations for a new product. The US contracts were stable after the S&B 500 index fell by more than 1% after a report on US service providers showing an increase in the price index to its highest level since early 2023. Chris Weston, head of the research department at Peppersone Group Ltd, said: “We have to ask ourselves if there is a reason for purchase on the basis of today’s basis.” The suspicion of local economic doubts has still affected the markets as Chinese markets indicate an increase of anxiety over the shrinkage cycle. This comes at a time when the differences in the returns were at the lowest levels since the global financial crisis, which tests the appetite of investors for many transactions that flood the global debt markets. Investors in the Chinese government bond market, of $ 11 trillion, were never in pessimism like today. The returns of Chinese sovereign effects of ten years have dropped to their lowest levels ever over the past few weeks, creating an unprecedented gap of 300 basis points compared to US bonds, despite a series of economic stimulus measures announced by the Government of President XI Jinping. The Chinese Yuan maintained its strict grip on the yuan through the daily reference rate. Where the Chinese Bank of the Chinese Volksbank determined the reference price at 7.1887 per dollar, which is a stronger level of approximately 1528 basis points of the average estimates of traders and analysts in the ‘Bloomberg’ survey. The gap expansion, which has reached its biggest level since April, shows the intention of policy makers to avoid the sharp declines of the yuan. US bonds fell slightly after decreasing by the curve in the previous session. The return on the sale of treasury bonds of ten years worth $ 39 billion has reached its highest level since 2007. Treasury effects have remained at the highest level since April. Strategists from JP Morgan, including Jay Barry, Jason Hunter and Foyby White, said in a memorandum that the yields had a sharp decline more than three months ago, but that it has since increased by more than 100 basis points. This recovery over time reduces the possibility of new significant declines, which is likely to abandon the yields in the coming weeks. The traders who were at the end of September fully expected the Federal Reserve to lower another interest rate by March, of the bets that indicated that there was a reduction in the interest until the second half of the year. Separate data showed Tuesday that jobs rose to their highest level in November, supported by business services, while other industries show a more diverse demand for employment. With the increase in US mortgages, Bank of America expects traders that traders will consider strong economic data as negative, suggesting that the Federal Reserve will need to maintain a longer interest rates for a longer period. The options indicate the possibility of a sharp increase in the yields of US treasury effects for 10 years to 5%, a level that has not been seen since October 2023. Hong Kong banks, including HSBC and standard ticket, have stored liquidity and criticism despite the government’s calls for helpful small businesses in financing the revival of the warring economy in the city. The banks retained a total liquidity cover of more than 180% in the second quarter, which is the highest percentage ever, and the highest requirements of about 100%. Oil prices rose for the second day on Wednesday, after a sectoral report indicating a different decline in US oil shares, while trading with a form of under 100 thousand dollars.