Stocks in Asia were mixed Tuesday with investors weighing Chinese measures to support the economy and the prospect for faster Federal Reserve policy tightening to fight inflation.
Equities were modestly higher in Japan, aided by a sinking yen. Hong Kong technology names declined on ongoing concerns over regulation. China wavered as developers dropped and investors assessed measures to tackle economic headwinds from Covid-led lockdowns. U.S. futures gained after stocks ended little changed Monday.
European contracts fell. Treasury yields dipped after the long end declined Monday. St. Louis Fed President James Bullard said that rate increases of 75 basis points — while not the base case — shouldn’t be ruled out as the central bank needs to move quickly to combat inflation.
The yen extended its longest losing streak in at least half a century as the comments underscored a widening gap between U.S. and Japan rates. Australian bond yields jumped. The central bank hinted rates may rise sooner due to quicker inflation and a pickup in wages growth.[BLOOMBERG]
