News Tech: Aug 24 (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever
Compounding the pain, any relief from lower U.S. Treasury yields on Tuesday evaporated late in the day, as the market reversed and the 10-year yield rose back above 3.00%.
Expect another jittery session for Asian markets on Wednesday, after Wall Street struggled to shake off its sluggish start to the week and purchasing managers index data showed that the global economy is coming under mounting strain.
Liquidity is thin and there are few key macro and corporate events in Asia to offer local direction on Wednesday. Classic – and risky – summer market conditions.
Meanwhile, purchasing managers index data on Tuesday showed that U.S. private-sector business activity contracted for a second month in August to its weakest in over two years, and PMIs from Japan and Europe showed weak activity as well.
The global economy is under strain, yet many central banks are being forced to tighten policy because inflation is at its highest in decades. Monetary authorities in Asia, aside from China and Japan, are no different. Indonesia’s central bank raised interest rates on Tuesday for the first time since 2018 as it stepped up the fight against inflation and steady the rupiah. South Korea’s central bank is expected to raise rates again on Thursday.
Key developments that should provide more direction to markets on Wednesday: U.S. durable goods orders (July)
U.S. pending home sales (July) U.S. 5-year Treasury auction
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Source: Reuters Trust Principles. RegisterReporting by Jamie McGeever in Orlando, Florida; Editing by Mark Porter