Most Asian markets end higher after Fed boss calms nerves over rates

  • Date: 13-May-2022
  • Source: Gulf Times
  • Sector: Economy
  • Country: Gulf
  • Who else needs to know?

Most Asian markets end higher after Fed boss calms nerves over rates

AFP / Hong Kong

Asian equities were mostly up yesterday following a tumultuous trading period on Wall Street, but analysts said the outlook remained bleak as inflation, the Ukraine war and Chinese lockdowns weigh on sentiment.

World markets have been volatile for much of 2022, with investors fretting about supply chain snarls due to China’s Covid curbs and as Europe weighs cutting out Russian oil over Moscow’s invasion.

The Federal Reserve last week announced its largest rate hike since 2000 to slow surging inflation and signalled that similar increases were likely in the coming months — a possibility that sent stocks on a rollercoaster.

But after Fed chief Jerome Powell on Thursday said the United States was not actively considering a steeper 75-basis-point move, markets experienced a bounce in Asia.

“Asia-Pacific equities are staging a relief rally today after Wall Street stabilised late in the session as Jerome Powell calmed nerves over potential 0.75% rate hikes,” said Jeffrey Halley of OANDA.

However, he warned that the positive showing should be taken with a grain of salt.

“Nothing has materially changed in the world from yesterday, and if anything, Russia/Europe risks are increasing,” he said.

“The rally today looks more like a technical rebound after a

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