© Reuters.
Asian stock markets presented a mixed picture on Monday, reacting to a combination of factors including rising oil prices, robust U.S. jobs data, and comments from Federal Reserve official Michelle Bowman suggesting further policy tightening to counter high inflation. The response was further complicated by geopolitical instability in the Middle East, following the Israeli government’s declaration of war in response to attacks from Palestinian Islamist groups Hamas and Islamic Jihad. This development led to a near 3% jump in prices during Asian trading.
In the wake of these developments, investors are now awaiting U.S. inflation reports and minutes from the Federal Open Market Committee (FOMC) for indications of the Fed’s future rate path. Amid this uncertainty, gold and the dollar, traditionally viewed as safe-haven assets, appreciated in value. Conversely, high Treasury yields have raised fears of potential economic turbulence.
The week opened with varied reactions across different Asian markets after a weeklong holiday. China’s index declined, while Hong Kong’s saw marginal gains despite disruptions related to typhoon conditions. The Australian edged up slightly, even as shares in Qantas fell by 3.8% due to potential aviation sector reforms proposed by a Coalition-led inquiry. Meanwhile, New Zealand’s S&P NZX-50 index fell by 0.73%, and Australia’s broader All Ordinaries index settled higher.
Investors continue to monitor these developments closely, with an update on U.S. interest rates expected on November 1 adding to the climate of anticipation.
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