© Reuters. File photo: A masked man looks at an electronic billboard displaying Japan’s Nikkei code outside a brokerage on September 24, 2021 in Tokyo, Japan amid the outbreak of the Corona virus disease (COVID-19). REUTERS / Kim Kyung-Hoon
By Wayne Cole
SYDNEY (Reuters) – Asian stock markets fell sharply on Monday, as data on US jobs eased concerns about the global economy but added to the risk of a tightening by the Federal Reserve.
Geopolitics was also a concern as the White House warned that Russia could invade Ukraine any day, as French President Emmanuel Macron prepared for a trip to Moscow.
Alert Mood Asia-Pacific stocks outside Japan Japan’s broadest index MSCI fell 0.1% in early trade. 0.9% and South Korea 0.8%.
Chinese markets returned with a bounce from the lunar New Year break, with the blue-chip CSI300 and both rising about 2% in morning trade, capturing last week’s gains in global stocks. The, who returned from the Friday break, was flat.
And Nasdaq Futures both fell slightly, with Amazon.com Inc (NASDAQ 🙂 making nearly $ 200 billion in profits after last week’s market turmoil, while Facebook-owned Meta Platforms Inc lost.
BofA analyst Savita Subramaniam said the company’s guidance for 2022 has been significantly weakened as most stocks have fallen following earnings reports.
“The comments suggested worsening labor shortages and supply chain problems. Bigger headlines are expected in Q1 than in Q4,” Subramaniam said in a statement. Margin pressure will continue as wages become the biggest price component for companies.
According to the January Wage Report, annual growth in average hourly earnings increased from 4.9% to 5.7%, while wages for the previous months were revised by 709,000, drastically changing the hiring trend.
“Not only has the report pointed out that payrolls are higher than anyone could have imagined, but there is an exceptional strength in revenue, which should add to the growing concern among central bank officials about the pressure on inflation,” said US Chief of Staff Kevin Cummins (NYSE :). Economist in the Northwest Markets.
Consumer price figures for January are due out on Thursday, and may show that headline inflation has been rising sharply to 5.9% since 1982.
As a result, markets moved to a one-third chance price by the Fed full 50 basis points in March and a real chance of reaching 1.5% by the end of the year.
It sent two-year yields 15 basis points per week, the biggest increase since late 2019, and they were 1.327% last. [US/]
In the currency markets, the euro continued to jump in the brightness of the European Central Bank as a new hawk, bringing markets the opportunity for first rate hikes and drastically boosting bond yields.
Glasnot, chairman of the Dutch central bank and a member of the ECB’s governing body, said on Sunday he expects a rise in the fourth quarter of this year.
The single currency was at $ 1.1456, up 2.7% last week and at its best performance since early 2020. Technically, the break of resistance around $ 1.1482 is $ 1.1600 and above.
The dollar performed well against the Japanese yen as the Bank of Japan was less likely to tighten this year. It was stable at 115.27 yen, while the euro rose 2.7% to 132.06 yen last week.
After falling 1.8% last week, the wild swing in the euro fell to 95.436.
Gold was firm at $ 1,808 an ounce, but is struggling to meet higher bond yields.
Oil prices have soared to a seven-year high amid concerns over supply caused by severe US weather and political turmoil among major global producers. [O/R]
It was up 32 cents at $ 92.97 a barrel, up 42 cents at $ 91.89.