FILE PHOTO: A man wearing a protective mask during the COVID-19 outbreak is shown on an electronic board displaying stock prices outside a securities company on September 21, 2021 in Tokyo, Japan. Reuters/Kim Jeong Hoon
October 1, 2021
TOKYO (Reuters) – Risk sentiment rises on Friday after global growth peaked in inflation, Asian equities fell sharply on Wall Street, and bonds canceled out.
Japan’s Nikkei stock average fell 1.86%, while the broader Tokyo Stock Price Index fell 1.95%.
Australia’s share price fell 2.05% and South Korea’s Kospi fell 1.51%.
The MSCI Index for Asia Pacific Equities fell 1.07%.
The Chinese market will be closed for a week from Friday on account of the Golden Week holidays.
Rob Kernel, Head of Asia Pacific Area Studies at ING in Singapore, said:
“You don’t need to know right now whether it’s really underlying and will cause problems for years to come. It’s scary enough to justify what you see in the market.”
US equity futures showed the S&P 500 fell 0.51% after the index fell 1.19% overnight.
Nasdaq futures also showed a drop of 0.49%, having lost 0.43% on Thursday.
The benchmark 10-year Treasury bond continued to rise in Tokyo trading, with the yield falling to 1.48%, the lowest since Sept. 28.
The dollar index, which measures currencies against six major rivals, fell below its year-long high of 94.504 on Thursday and finally changed trade at 94.326.
Federal Reserve Board Chairman Jerome Powell said Wednesday that resolving the “tension” between high inflation and high unemployment was the most urgent issue for the Federal Reserve Board, stable prices and full employment. He acknowledged a potential conflict between the Fed’s two employment goals.
China is of particular concern to investors, hit by regulations in the technology and real estate sectors, and is currently addressing power shortages that could drive up energy prices globally.
Crude oil prices continued to fall on Friday after Brent crossed $80 a barrel for the first time in three years at the start of the week.
Brent crude futures were almost flat on Thursday at $78.32, while US crude futures were almost unchanged at $75.07.
Gold, a safe haven for inflation-hedging, fell 0.1% to $1,755.35 an ounce, its highest level since March, after rising 1.77% on Thursday.
(Reporting by Kevin Buckland, edited by Lincoln Feast.)