Asian Stock Market: RBA’s 0.25% rate hike weighs on ASX amid off in China, Japan

Asia-Pacific markets remains lackluster amid holiday at major bourses.
RBA surpasses expectations by fueling benchmark rate to 0.35%.
Treasury yields remain firmer around multi-month high as traders brace for FOMC.
Risk-related headlines, US Factory Orders may entertain traders.

Equity markets in the Asia-Pacific region remain lackluster, despite losing a bit due to firmer yields, amid holidays in China, Japan and India on Tuesday. While portraying the mood, MSCI’s index of Asia-Pacific shares ex-Japan drops 0.17% while the benchmark Treasury yields in the US remain near the three-year high during the inactive bond markets.

Even so, the Reserve Bank of Australia’s (RBA) higher-than-expected rate lift challenges the Aussie investors and drowns the benchmark equity index, namely ASX200. Following the RBA’s 0.25% rate hike, versus 0.15% expected, the ASX 200 refreshed daily lows to extend the previous day’s losses towards the 7,300 level, down 0.45% by the press time.

Elsewhere, softer prints of New Zealand’s Building Permits for March, 5.8% versus upwardly revised 12.8% prior, couldn’t lift the NZ stocks as the NZX 50 printed 0.40% intraday losses at the latest.

The reason could be linked to the firmer yields across the board in anticipation of tighter monetary policies ahead.

Given the off in the multiple markets, coupled with a light calendar, investors are likely to wait for the Fed’s verdict and may extend the previous moves. For the intermediate directions, the US Factory Orders for March, expected at 1.1% versus -0.5% prior, maybe looked at.

Additionally, headlines from Russia and China will also be the key as Europe is all set to exert more pressure on Moscow for its Ukraine invasion whereas Beijing announced strict activity rules during the festive season amid rising covid woes.

Also read: S&P 500 Futures print mild gains tracing Wall Street moves, yields stabilize on Japan’s off

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.