Asia shares tense as Fed looms, Ukraine a concern



* Asian stock markets : Link

* Nikkei off 1%, Wall St futures try to bounce

* Fed expected to sound hawkish on March rate hike

* Markets wary of possible Russian attack on Ukraine

* Dollar generally firm, oil edging higher again

By Wayne Cole

SYDNEY, Jan 24 (Reuters) - Asian share markets slipped on Monday with the Federal Reserve expected to confirm it will soon start draining the massive liquidity that has fuelled the huge gains in growth stocks in recent years.

Adding to the caution was concerns about a possible Russian attack on Ukraine with the U.S. State Department pulling out family members of its embassy staff in Kyiv.

The New York Times reported President Joe Biden was considering sending thousands of U.S. troops to NATO allies in Europe along with warships and aircraft.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.1% and Japan's Nikkei .N225 1.0%. However, Wall Street futures were trying to bounce after last week's drubbing, with the S&P 500 futures ESc1 up 0.4% and Nasdaq futures NQc1 0.7%.

Edgy markets are now even pricing in a small chance the Fed hikes rates this week, though the overwhelming expectation is for a first move to 0.25% in March and three more to 1.0% by year end. FEDWATCH

"With inflation eye-wateringly high, the Fed is on course to steadily remove the ultra-accommodative monetary policy that has been a key prop to stock prices for over a decade now," said Oliver Allen, a market economist at Capital Economics.

The prospect of higher borrowing costs and more attractive bond yields took a toll on tech stocks with their lofty valuations, leaving the Nasdaq down 12% so far this year and the S&P 500 nearly 8%.

The rout was exacerbated by a slide in Netflix NFLX.O , which tumbled almost 22%, shedding $44 billion in market value.

Such was the scale of the losses that Treasuries actually rallied late last week on speculation the bonfire of market wealth might scare the Fed into being less hawkish, a variation of the old Greenspan put.

However, Allen noted that even with the recent drop the S&P 500 was still 40% above where it ended 2019, and the Nasdaq 60%.

"Investors may not be able to rely on a so-called 'Fed put' this time around, given that the central bank's tightening cycle has not even begun, and that the strength of the U.S. economy suggests that much tighter policy is warranted."

Indeed, the first reading of U.S. gross domestic product for the December quarter is due this week and forecast to show growth running at an annualised 5.4% before Omicron put its foot on the brakes.

Earnings season is also well under way and companies reporting this week include IBM IBM , Microsoft MSFT.O , Johnson & Johnson JNJ , Intel INTC.O , Tesla TSLA.O , Apple AAPL.O and Caterpillar CAT .

While Treasuries did bounce late last week, 10-year yields are still up 22 basis points on the month so far at 1.77% US10YT=RR and not far from levels last seen in early 2020.

That rise has generally supported the U.S. dollar, which added 0.5% on a basket of currencies last week and last stood at 85.647 =USD . The euro was stuck at $1.1341 EUR= , having failed to sustain a recent rally to near $1.1500. "The risk is the Fed's statement portrays an urgency to act soon, likely in March, in the face of very high inflation," said Joseph Capurso, CBA's head of international economics.

"That could even encourage markets to price a risk of a 50 basis point rate hike in March and, under that scenario, we expect a knee-jerk reaction above its 4 January high of 96.46."

The Japanese yen tends to benefit from safe haven flows as stocks crumble, keeping the dollar soft at 113.66 JPY= and uncomfortably close to last week's low of 113.47.

Gold held up at $1,833 an ounce XAU= , having hit a six-week peak of $1,842 last week.

Oil prices were rising again having climbed for five weeks in a row to a seven-year peak on expectations demand will stay strong and supplies limited.

Brent LCOc1 added 74 cents to $88.64 a barrel, while U.S. crude CLc1 rose 70 cents to $85.84.



Asia stock markets Link
Asia-Pacific valuations Link



Reporting by Wayne Cole; Editing by Sam Holmes


免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明