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Fed hike, Bank of Japan, interest rates, currencies

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Oil prices rise after Fed rate hikes, demand fears persist

Oil prices rose after the Fed’s third consecutive rate hike.

Reuters too reported Chinese refineries expect the country to release up to 15 million tons of export quotas for oil products for the rest of the year, citing those in the know.

Brent crude futures rose 0.45% to $90.24 a barrel, while American West Texas Intermediate also gained 0.45% to $83.3 a barrel.

— Lee Ying Shan

Fed hike likely keeps Asian risk assets under pressure, says JPMorgan

Asian risk assets, especially export-oriented companies, will remain under pressure in the near term following the Fed rate hike, said Tai Hui, chief APAC market strategist at JPMorgan Asset Management.

Tai added that a strong US dollar is likely to continue, but monetary policy tightening at most Asian central banks – with the exception of China and Japan – should help limit the magnitude of the Asian currency’s depreciation.

The US dollar indexwhich follows the greenback against a basket of its counterparts, strengthened sharply, last standing at 111,697.

— Abigail Ng

Bank of Japan holds firm, oversees yield curve policy – yen weakens past 145

The Bank of Japan kept its interest rates on hold, according to an announcement on its website — meeting expectations forecast by economists in a Reuters poll.

Shortly after the decision, the Japanese yen weakened to 145 against the greenback.

“Japan’s economy has picked up as the resumption of economic activity progressed, while protecting public health from Covid-19, despite being impacted by factors such as a rise in commodity prices,” the central bank said in the statement. .

Jihye Lee

CNBC Pro: This fund manager is beating the market. This is what he bets on

Better performing fund manager mentions his short positions

Stock markets have fallen, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to deliver positive returns. The fund manager has a number of short positions to capitalize on market volatility.

Pro subscribers can read more here.

— Zavier Ongo

Asian currencies weaken after Fed’s third major gain in a row

Asia-Pacific currencies weakened further after the US Federal Reserve implemented its third consecutive 75 basis point rate hike.

China’s onshore yuan weakened past 7.09 per dollar and hovered near levels not seen since June 2020.

The Japanese yen weakened to 144.51, while the Korean won also rose beyond 1.409 against the dollar, the weakest since March 2009.

The Australian dollar fell to $0.6589.

—Jihye Lee

US 2-year Treasury yields rise towards 2007 highs

British pound continues to fall, hovering around 37-year low

The British pound declined further in morning trading in Asia, reaching $1.1217 — the lowest level since 1985.

The currency has lost ground against the US dollar this year as economic concerns mount.

Analysts are divided whether the British central bank will raise interest rates by 50 or 75 basis points later today.

Sterling last traded at $1.1223.

— Abigail Ng

CNBC Pro: Morgan Stanley’s Mike Wilson Names The Main Trait He Likes In Stocks

Morgan Stanley’s Mike Wilson remains defensive amid ongoing market volatility this year. He mentions the main characteristic he looks for in stocks.

Stocks with this trait have been “rewarded” this year, and Wilson says the trend is likely to continue until the market turns bullish.

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— Zavier Ongo

Bank of Japan likely to retain control of yield curve for the rest of 2022: DBS

Substantial changes to the Bank of Japan’s policy are unlikely to happen until after the central bank’s leadership changes in mid-2023, DBS Group Research said in a note on Tuesday.

But the BOJ may consider fine-tuning policies, such as widening the target band by 10 basis points, in response to market pressures, analysts wrote.

It added that “regardless of the intervention”, the dollar-yen could test 147.66, last seen in August 1998, adding that they don’t rule out the USD/JPY going above 150 “without a hard landing in the US leading to Fed austerity.”

— Abigail Ng

Stock futures open lower

US stock futures fell Wednesday evening after a volatile session in the key averages as traders weighed in on another major rate hike from the Federal Reserve.

The Dow Jones Industrial Average futures fell 16 points, or 0.05%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.31% respectively.

— Sarah Min

Shares fall, Dow closes 522 points lower in volatile trading session

Shares faltered on Wednesday but ended the session deep in the red after the Federal Reserve announced another 75 basis point rate hike.

The Dow Jones Industrial Average lost 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 fell 1.71% to 3,789.93 and the Nasdaq Composite plunged 1.79% to 11,220.19.

— Samantha Subin

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