Asian stocks drop to reducing interest reduction expectations

The shares and bonds in Asia fell following the release of US work data that were stronger than Friday, while oil jumped to the highest level in four months, with the United States imposing a new wave of sanctions against Russia, threatening to reduce supplies. The MSCI index of the region’s shares dropped for the fourth consecutive session, as US employment numbers weakened the betting on further reduced interest rates by the Federal Reserve. US stock futures indicate more losses in Wall Street after the S&P 500 index fell 1.5% on Friday. Japanese markets are closed due to a holiday, which means the absence of trading on US bonds in Asia. “The falling pressure in the Asian markets is holding on to US employment data on Friday. Strict developments caused by data add extra pressure on emerging markets, as expectations of three or four discounts were of interest before Trump’s victory in the election to just one reduction,” Lin Song said, the Great Economist of the Greater China region. Brent rough rose above $ 81 a barrel during Asian trading hours, after a leap on Friday. This came after the United States set up sanctions that are the most striking so far on the Russian oil industry, making it two major export companies, insurance companies and more than 150 oil tankers. The sharp rise in oil prices can add an extra challenge for central banks, including the Federal Reserve, if it leads to more ongoing inflation. The Australian and New Zealand bonds decrease, and the dollar flirted with the Australian and New Zealand bonds with the start of trade, which affected the decline in the US Treasury effects last week. Australian mortgage returns for ten years increased by 11 basis points to 4.66%. The US sovereign effects fell on Friday after the release of recruitment data for December, resulting in mortgage returns for 30 years to the first time in more than a year to more than 5%. In the foreign exchange markets, the performance of the dollar was contrary to Asia after jumping after the employment data on Friday. The Bloomberg index settled the immediate dollar unchanged and retained its proximity to its highest level in two years. In China, the Chinese People’s Bank on Monday sharpened its support for the yuan after the currency approached its lowest levels against the dollar in external trade. This came by issuing warnings and making adjustments to capital restrictions. The Chinese People’s Bank, in collaboration with other regulatory authorities, said it would work to strengthen the management of the foreign exchange market, and to deal with any behavior that could lead to the disruption of the market system and prevent the risks of the value of the yuan too much. The bank added in a statement that Beijing will ensure the stability of the currency at reasonable levels. Chinese shares remain back despite the registration of export in a record number, Chinese shares continued on Monday with their losses, despite the announcement of the data stating that the export recorded a record level last year. According to a report broadcast by China Central TV, based on customs data, exports increased by 7.1% to 25.5 trillion yuan ($ 3.5 trillion) in 2024. In the United States, traders await the release of inflation data on Wednesday as one of the following main indicators. Investors will also monitor inflation forecast for a year of the Federal Reserve in New York, which is scheduled on Monday, in addition to the price data of the product Tuesday, and unemployment benefits on Thursday. Bank of America has reduced its previous forecast for the Federal Reserve by a quarter percentage point twice this year, indicating that he expects no discounts, with the possibility that the next step is an interest. On the other hand, Goldman Sachs expected two reduction in interest rates this year instead of three as you previously expected.