© Reuters.
By Amber Warrick
Investing.com — Most Asian stock markets range-bound from flat to low on Thursday, as markets weighed the prospect of a less hawkish Federal Reserve against mounting economic headwinds in the coming months. .
Hong Kong’s index was the single best performer of the day, rising 0.7% on strength in heavyweight tech stocks after Tencent Holdings Ltd (HK:) posted better-than-expected annual results. expected. The reading helped generate some optimism about China’s economic recovery this year.
The Hong Kong Monetary Authority too, keeping pace with the Federal Reserve.
But Chinese indices were mixed, up 0.3% while losing 0.1%, as major property shares tumbled after the embattled Chinese developer. evergrande Group (HK:) outlined a debt restructuring plan, which could set a precedent for the rest of the industry.
Other Asian markets slid lower. India’s indices fell 0.4% and 0.3% respectively, while Australia’s lost 0.6%.
Japan’s index fell 0.3% ahead of Friday’s key reading, which is expected to influence the Bank of Japan’s stance on monetary policy in the coming months.
Sentiment in Asia was affected by a weak entry from Wall Street, such as after the Federal Reserve’s decision on Wednesday.
The Fed hinted at a possible pause in its rate-raising cycle in the wake of a banking collapse. But the central bank reiterated its commitment to reduce inflation, forecasting at least one more increase this year, and said it has no intention of cutting interest rates this year.
While US interest rates are now trending near their peak in this tightening cycle, analysts cautioned that further increases, coupled with rates that stay higher for longer, are likely to exert further pressure. pressure on the economy this year.
The Fed also cut its annual GDP outlook.
The prospect of high interest rates in the US bodes ill for Asian markets, as foreign capital flows to the region are expected to remain restricted amid tighter monetary conditions. Fears of an economic slowdown are also expected to keep investors risk averse, limiting appetite for Asian markets.
High-risk Southeast Asian markets fell on Thursday, losing 0.6% and 0.4% respectively.