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Asian stocks are trading lower as the dollar rises

Asian stocks fell on Thursday, penalized by the US dollar which continued to rise as investors bet on faster rising interest rates in the US than in other major economies like Japan and the eurozone.

The largest MSCI index of Asia-Pacific stocks outside of Japan fell 0.18% to its lowest level in six weeks, after posting a slight decline in each of the last six sessions of stock Exchange. The Japanese Nikkei rose 0.8%.

There were slight drops in all areas. Australia lost 0.1%, Hong Kong lost 0.35% and Chinese blue chips lost 0.3%.

Notably in Hong Kong, shares of Kaisa Group Holdings Ltd rose 24% when they returned to trading, after the struggling Chinese developer said it was offering bondholders the option to swap existing bonds. against new bonds with extended maturities, to improve stability.

In general terms, “when it comes to regional equity allocation, we are watching the US dollar hitting new highs and it’s a headwind for emerging market equities,” said Fook-Hien Yap, strategist in senior investment at Standard Chartered Bank. management.

The dollar is trading near its nearly five-year high against the Japanese currency at 115.3 yen, and nearly 18 months against the euro which was at $ 1.1206.

Supporting the greenback, several policymakers at the US Federal Reserve have said they would be willing to accelerate the reduction of the central bank’s bond purchase program if the high inflation rate continues, and to increase more quickly. interest rates, according to the Fed minutes. 2-3 political meeting showed.

“The market is now anticipating more than two hikes next year, but we think that is too aggressive. We are only looking for about a hike next year,” Yap said.

Those expectations pushed US Treasury yields higher, albeit inconsistently, with benchmark 10-year bonds last yielding 1.6427% reaching 1.6930% on Wednesday.

US Treasuries will not be traded Thursday due to the Thanksgiving holiday. The US stock exchanges will also be closed and will have a shortened session on Friday.

Overnight, Wall Street finished higher and re-testing records as tech stocks rebounded from a massive selloff earlier this week.

In other central bank news, the Bank of Korea raised its policy rate by 25 basis points on Thursday, as widely expected, as concerns over rising household debt and inflation offset the uncertainty surrounding a resurgence of COVID-19 cases.

Oil prices edged up after a few turbulent days in which the United States announced it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain in an attempt to cool oil prices after calls to OPEC + to pump more have gone unheeded. However, investors questioned the effectiveness of the program, leading to price gains.

Brent crude was at $ 82.53 a barrel, up 0.33%, while US crude was at $ 7,856, up 0.2%.

Spot gold rose 0.17% to 1,791 an ounce.


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