The main indexes in Asia and Oceania stock markets moved lower in the session on Wednesday (21/9), following losses on Wall Street in view of the expected increase in interest rates by the Federal Reserve.
“Over the past 24 hours the sentiment has been negative, with shares moving lower and safe-haven currencies, including the dollar, stronger,” said Taylor Nugent, an economist at National Australia Bank.
Wall Street’s three main indexes recorded losses, while the dollar index strengthened above the 110 level.
As markets expect the US Federal Reserve to raise interest rates by another 75 basis points this week, Bank of Singapore chief investment strategist Eli Lee said that aside from investing in US bonds and the dollar, there may be value and in other sectors such as Chinese stocks.
“We think the Chinese equity space continues to look very interesting. We have not reached the lows we saw in March earlier this year,” he said. “The economic ‘pain’ we’re seeing in China right now is largely self-inflicted.
The zero covid policy is limiting, but we are seeing some signs and we are optimistic that after the (Chinese Communist) Party Congress, we could see the Authorities start to review this policy. So we are slightly optimistic on that front,” he added.
Against this backdrop, Japan’s Nikkei fell 1.36% to close at 27,313.13 points, while Hong Kong’s Hang Seng fell 1.60% to 18,481 points.
In mainland China, the Shanghai Composite fell 0.17% to 3,117.18, with the Shenzhen Component down 0.63% to 11,212.27.
Taiwan Weighted fell 0.86% to close at 14,424.52, while the Kospi lost 0.87% to 2,347.21.
Australia’s S&P/ASX 200 closed at 6,700.20, down 1.56%.